It’s been a whirlwind year for chip stock Nvidia (NASDAQ:NVDA) over the last 12 months, and it’s gained substantially in that time. But there are some signs that the party may be coming to an end, and one of the latest trouble spots comes from Josh Brown, who cut his position in Nvidia by 20%. Meanwhile, the rest of Nvidia’s investors were hardly concerned, and Nvidia was up fractionally in Wednesday morning trading.
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Josh Brown, who serves as both the CEO of Ritholtz Wealth Management and a contributor with CNBC, pared back his Nvidia holdings by 20% because he believes there’s too much excitement around Nvidia right now. That suggests a potential sell-off in the future, and Brown decided to take some profits.
Some immediately wondered what Brown was thinking, particularly as Goldman Sachs analysts hiked the price target on Nvidia from $625 to $800 per share, suggesting that Brown was planning to leave a busload of money on the table. But Brown stuck to his guns, insisting that way too many people were way too exuberant about Nvidia, and that called for a voluntary cut before his gains were lost.
He’s Not Alone
This is not the first time that some have wondered if Nvidia may have run up as far as it can go. Just yesterday, we heard about Sandeep Gupta, a Barclays analyst who works on the fixed-income side of things. Gupta noted several points that would have left Nvidia on the back foot, including growing competition from other chip stocks and a decline in power required once databases are in place.
What Is the Target Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 34 Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 210.16% rally in its share price over the past year, the average NVDA price target of $682.76 per share implies 0.91% downside risk.
