- Federer defeats Nadal in four sets at Wimbledon
- U.K. police to investigate ambassador's leaked communications
- $5 billion fine reported for Facebook data-privacy bungles
- Jeffrey Epstein worth more than $500 million, paid potential witnesses, federal prosecutors say
- U.S. appeals court blocks Trump administration birth control exemptions
Bernstein downgraded semiconductor stock Nvidia on Monday to market-perform from outperform, saying the company is facing severe challenges to growth while, at the same time, “headline risk [is] likely to continue increasing.”
“Following the company’s somewhat chilly guidance cut … we believe the shares are likely to remain hamstrung,” Bernstein analyst Stacy Rasgon said in a note to investors.
Ahead of earnings on Feb. 14, Nvidia cut its revenue guidance for the fiscal fourth quarter. The company cited “deteriorating macroeconomic conditions, particularly in China” for the lowered forecast, which was Nvidia’s second cut in the past three months.
“The latest cut appears much more fundamentally demand-driven, with the question of the ‘true’ run-rate of the gaming business remaining up in the air for now,” Bernstein said.
Nvidia shares slid 1 percent in premarket trading from Friday’s close of $148.17 a share. Bernstein has a price target on Nvidia of $175 a share.
After five years of monster gains, the hot stock cracked in 2018. The shares are down more than 40 percent the last 6 months.