On November 22, 2024, PhillipCapital downgraded Nvidia Corporation’s stock rating from “Buy” to “Accumulate,” citing recent price fluctuations as the company prepares to ramp up production of its Blackwell processors. The firm raised its target price for Nvidia from $155 to $160, while the stock was trading at $141.92 at the time of the report.
- Nvidia downgraded to "Accumulate" by PhillipCapital.
- Target price increased to $160 from $155.
- Blackwell processors expected to boost revenue.
- Trade tensions may impact Nvidia's stock value.
- China sales decreased from 24% to 13%.
- "Accumulate" indicates 5%-20% return forecast.
PhillipCapital’s analysis indicates that Nvidia is experiencing strong demand for its AI products, particularly the H200 Hopper, which has achieved sales in the “double-digit billions” range. The company anticipates that demand will remain robust through at least the second half of 2026. Blackwell processors began production in the fourth quarter of 2025, with Nvidia expecting revenues to surpass earlier estimates of several billion dollars.
Despite the positive outlook, PhillipCapital predicts a slowdown in Nvidia’s earnings growth after mid-fiscal 2026, following the delivery of Blackwell products. The firm emphasized Nvidia’s leading position in the AI GPU market, noting that the Blackwell processor offers 2.2 times the capabilities of the previous Hopper generation. However, the report also cautioned about the potential impacts of US-China trade tensions on Nvidia’s stock value.
- China accounted for 24% of Nvidia’s sales in fiscal year 2019, down to approximately 13% currently.
- The US-China trade war that began in July 2018 led to a more than 50% decline in Nvidia’s stock price from its peak.
PhillipCapital uses a total return-based approach for equity assessments, categorizing “buy” ratings for expected returns over 20% and “accumulate” for returns between 5% and 20%. The firm’s insights reflect a cautious yet optimistic outlook for Nvidia amid ongoing market dynamics.
In summary, while PhillipCapital has downgraded Nvidia’s stock rating, the firm remains optimistic about the company’s growth prospects in the AI sector, particularly with the upcoming Blackwell processors. However, external factors such as trade tensions may pose risks to Nvidia’s future performance.
