5-star analyst resets Nvidia stock price target ahead of earnings

Nvidia (NVDA) banal closed the May 15 trading league 4.42% down astatine $225.32, according to Yahoo Finance.

Other semiconductor stocks besides dipped:

• Micron closed 6.62% little astatine $724.66

• Intel closed 6.18% little astatine $108.77

• AMD closed 5.69% little astatine $424.1

• Broadcom closed 3.32% little astatine $425.19

• Marvell closed 3.12% little astatine $176.89

The stocks started their rally aft March 30, and made the pursuing gains:

• Intel gained 164.06%

• Micron gained 125.18%

• AMD gained 116.33%

• Marvell gained 101.44%

• Broadcom gained 44.91%

• Nvidia gained 36.41%

There person been galore factors that contributed to the rally, including hyperscalers expanding their superior expenditure plans, Bank of America revising its server CPU income forecasts, and Intel’s Q1 net boosting assurance successful the semiconductor sector.

But wherefore is the semiconductor rally having a hiccup?

UBS sends a informing connected semiconductor stocks

UBS analysts said successful their caller probe enactment that, aft conducting quantitative analysis, they recovered that 8 of the 12 largest planetary semiconductor companies by marketplace capitalization are highly crowded long, according to Proactive.

They said that hyperscalers are shifting from asset-light to asset-heavy concern models. They judge this volition pb to a diminution successful currency travel instrumentality connected concern (CFROI) implicit the adjacent 3 years.

More Tech Stocks:

• BofA resets Google banal terms people aft net smasher

• Bank of America resets Microsoft banal forecast aft earnings

• BofA and Goldman Sachs reset Marvell banal terms targets

UBS analysts noted that Nvidia’s CFROI is expected to scope 82% this year. They spot this arsenic a risk, arsenic lone 0.09% of planetary stocks person historically sustained returns supra 50% for 5 years, and conscionable 0.02% for 10 years.

In summation to this UBS warning, Nvidia Q1 fiscal twelvemonth 2027 net are acceptable to beryllium released connected May 20.

It has go astir a contented that Nvidia's banal crashes aft earnings, contempt consistently beating the outlook.

Nvidia CEO Jensen Huang explained this improvement astatine the all-hands gathering aft the Q3 fiscal 2026 earnings. “If we delivered a atrocious quarter, it is grounds there’s an AI bubble. If we delivered a large quarter, we are fueling the AI bubble.”

It seems the nervousness among semiconductor banal investors peaks adjacent Nvidia’s report, truthful this mightiness besides beryllium causing the dip.

Contrary to sentiment, Goldman Sachs raised its EPS forecast for Nvidia up of earnings.

TD Cowen raises Nvidia banal terms target

TD Cowen expert Joshua Buchalter besides updated his sentiment connected Nvidia banal up of earnings, according to Investing.