Analyst cuts Nvidia stock price target due to a growing threat

Core Viewpoint - Nvidia has experienced a decline in stock price following its quarterly earnings report, despite a significant year-to-date increase, primarily driven by the generative AI boom [1][2]. Group 1: Financial Performance - Nvidia's Q2 earnings were reported at $1.05 per share, surpassing Wall Street estimates of $1.01, while revenue increased by 56% to $46.74 billion, exceeding analysts' expectations of $46.06 billion [6]. - The company's data center revenue has missed estimates for two consecutive quarters, impacting stock performance [5]. Group 2: Market Challenges and Developments - Nvidia faced challenges in the first half of the year, including tariff tensions and tightening U.S. export restrictions on advanced chips, although some pressures have eased with a recent deal allowing sales in China [2]. - An analyst has lowered Nvidia's stock price target from $210 to $200, citing increasing competition in the AI chip market from rivals like Broadcom [7]. Group 3: Future Outlook - Despite the challenges, Nvidia remains a leader in the AI race, with strong demand for its Blackwell GPU architecture, which is central to the AI compute market [4][5]. - The XPU market is projected to grow 53% by 2026, outpacing the expected 34% growth for AI GPUs, driven by major tech companies [8].