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Citron Research, short seller, thinks about the graphics chip maker Nvidia (NVDA) has been oversold since the release of its disappointing third quarter results last week. Citron announced Tuesday it has bought the shares of Nvidia, giving a boost to the shares.
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The Nvidia share rose 3% to 149.08 today. Its shares had fallen 28.5% Friday and Monday after the chip maker missed its sales target for the third quarter and guided analysts' outlook for the current quarter on Thursday night.
"This is the first time in 2 years (Nvidia) that the stock offers an attractive risk / return ratio for investors", Lemon said in a tweet. He predicted that the stock will reach 165.
Citron Research said that Nvidia is a major player in trends such as artificial intelligence and big data. The company should be able to "consume" its current surplus stocks of game processors.
Nvidia Stock taurine trim price target
Elsewhere on Wall Street, Cowen analyst Matthew Ramsay reiterated his outperformance of the Nvidia title, while reducing his price target from 320 to 320. Nvidia hit a record high of 292.76 on Oct. 2.
The problem of Nvidia stocks caused by the collapse of the cryptocurrency mining market will take one to two quarters to be corrected. But the gaming chips market in general remains healthy, said Ramsay.
In addition, the adoption of Turing gaming cards of the company is still in its infancy, he said. Video game companies need to create games that take advantage of its advanced features.
At the same time, Nvidia's chip market for data centers remains strong, Ramsay said.
Micron Technology Stock Downgraded
Elsewhere in the semiconductor sector, Tristan Gerra, an analyst at Baird, downgraded the memory chip maker Micron Technology (MU) to underperform outperformance. He reduced his price target from 32 to 32.
"The continuing deterioration of DRAM and NAND prices leads us to model eight consecutive quarters of shrinking gross margin and EPS," he said in a report.
He sees DRAM's gross profit margins rising from a recent peak of 71% to 50% in the second half of 2020. This decrease will be fueled by the reduction in channel inventories and increased capacity.
"The outlook for the Nand continues to deteriorate, contract prices are expected to decline in mid-teens in each of the next two quarters," he said.
Micron shares fell 1.9% to 36.12 on Tuesday.
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