Nvidia cut to Hold at Summit Insights on less favorable risk-reward

Summit Insights downgraded Nvidia (NVDA) to Hold from Buy. The stock should continue to outperform consensus expectation based on current market demand, supply chain checks and product leadership, but the risk-reward on the stock is no longer favorable due to persistent high whispers numbers and rumor of entry into the PC Client MPU market, the analyst tells investors in a research note. Datacenter capex growth for the training market will continue to benefit Nvidia, but lower computing power requirement for inference – while not evident today – will undoubtably have a negative impact to the company’s financial performance in the medium to longer-term, Summit states. The firm also believes that Nvidia’s outperformance and growth could decelerate into the second half of FY26 as supply of its GPUs catches up to industry demand.