Citron's Attack on Nvidia at PT $200 is Uncalled For
Citron’s Andrew Left is at it again. The analyst questioned the valuation of Nvidia (NASDAQ: NVDA), sending the stock lower by around 3% that day. Still, Nvidia’s firing on all cylinders and is very likely to hold its highs.
Andrew Left tweeted that Nvidia is a great company but a dangerous stock. He thought the stock rose too fast in 2018, adding $30 billion in market cap. The last time Citron commented on the stock, it called for a $130 share price when Nvidia traded at $200. Since the last call was wrong, chances are just the same that this one is, too.
Nvidia has multiple catalysts driving revenue. ESports is growing, creating demand for computing solutions offered from Nvidia. Data centers are shifting from CPUs to GPUs, while autonomous driving will also demand Nvidia’s powerful technology power. Cryptocurrencies may be crashing but the technology behind it will not just disappear.
If crypto mining activities do pull back and normalize GPU pricing, Nvidia will be fine. PC gamers are waiting for graphic card prices to fall back to MSRP. So, even a drop in prices in high-end will have, potentially, a positive impact on demand.