Rolland’s “checks indicate PC-market weakness may be extending beyond consumer and into enterprise.” Consequently, Susquehanna reduced the firm’s share-price prediction for Nvidia and its peers to reflect a “new PC-shipment forecast and weakening PC-industry checks.” Apparently, his primary reason is simple: The PC market isn’t doing well. Thus, as Susquehanna analyst Christopher Rolland just cut his price target on NVDA stock from $190 to $180, investors should want to know why. That said, it’s instructive to consider their stated reasons for lowering their share-price forecasts. When stocks decline precipitously, it’s normal for analysts to reduce their price targets. Nevertheless, contrarian investors should see the pessimism as overstated - and with top-tier gaming tech, Nvidia might manage to prove the skeptics wrong. Nvidia’s quarterly results stoked the market’s bearish sentiment, and a Wall Street expert’s PC-industry concerns only add to the anxiety. Moreover, gaming-segment revenue declined 33% YOY, and that’s the company’s bread and butter. The company reported second-quarter fiscal 2023 GAAP earnings per diluted share of just 26 cents, down 72% year-over-year (YOY). If people hoped that Nvidia would single-handedly save the tech sector in August, they were surely disappointed. Besides, Nvidia’s latest GPU lineup is bound to be a game-changer, literally and otherwise. However, the shares are so beaten-down that it’s starting to look like an overreaction. As some investors fret over PC-market pressure, it might be tempting to give up on Nvidia altogether. Nvidia (NASDAQ: NVDA) stock is just one of many downtrodden tech stocks of 2022.
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