If you are a Nvidia (NVDA – Research Report) investor, you probably know that the stock has been going through a bit of a rough patch lately. Shares plummeted last week, as a disappointing earnings report cost NVDA over $23 billion in market capitalization. Demand for chips to use in crypto mining has dramatically dropped as the prices of digital currencies have plunged.
So the key question becomes, should you cash out of Nvidia- and should you do so now? Or alternatively, if you are not currently invested, should you be tempted to buy on the dip?
Well there is never one clear answer. But there is a place we can turn to for advice. And most crucially, advice from experts with a proven track record of making smart investing decisions. Because if you are going to listen to someone, it may as well be from someone who actually knows what they are talking about.
Time for a Downgrade
That takes us to Craig Ellis of B Riley FBR.He is one of the top-ranked analysts on TipRanks.
How do we know this? We can see from his TipRanks profile that Ellis is ranked #30 out of over 5,000 Wall Street analysts.
This is down to his very impressive success rate and average return- currently he is tracking a 21.4% average return per rating. Plus the ranking takes into account the statistical significance of his ratings i.e. the number of ratings an analyst makes. And as you can see below, Ellis’ track record on Nvidia specifically is even stronger.
For a long time Ellis has been a big fan of Nvidia. He upgraded Nvidia from Sell to Buy back in 2014, and has been bullish ever since. That is, until now. On November 16, Ellis downgraded the graphics-chip specialist from Buy to Hold.
True, that’s not a Sell rating but for an analyst, a downgrade is a very bearish signal nonetheless. Plus he slashed his price target from $240 to $190. Given the stock’s 27% fall in the last five days, even his reduced price target suggests 30% upside from current levels.
