"NVIDIA ( NASDAQ:NVDA | NVDA Price Prediction) is down 4% over the past week. That's a sharper drop than the broader market's 2.21% decline and more than double the semiconductor sector's 1.07% pullback measured by the VanEck Semiconductor ETF. Yet Wall Street analysts maintain an average price target of $253.88, implying 41% upside from current levels. That's a massive gap for a stock that just delivered a 62% year-over-year revenue surge and 65% net income growth in its most recent quarter."
"The AI infrastructure leader dominates the data center GPU market, with $51.2 billion in Data Center revenue last quarter, up 66% year-over-year. CEO Jensen Huang described demand as "off the charts" for the company's new Blackwell architecture, noting that "cloud GPUs are sold out." With the company guiding to $65 billion in Q4 revenue, the fundamental story appears intact. So why the disconnect between price action and analyst conviction?"
"The weakness appears tied to several factors. First, insider selling has been relentless. CFO Colette Kress sold approximately 48,870 shares on February 4 at prices ranging from $172.40 to $179.16, right in the middle of this week's decline. EVP Ajay Puri disposed of 200,000 shares on January 21 at $180.04. Across the past 90 days, there have been 115 insider disposals and zero purchases. When executives sell during weakness rather than buy, it raises questions about their confidence in near-term upside."
NVIDIA shares dropped 4% over the past week, underperforming the broader market and semiconductor sector. Wall Street analysts hold an average price target of $253.88, implying about 41% upside. The company reported 62% year-over-year revenue growth and 65% net income growth in the most recent quarter. Data Center revenue reached $51.2 billion, up 66% year-over-year, driven by strong demand for the Blackwell architecture and sold-out cloud GPUs. Management guided Q4 revenue to $65 billion. Recent weakness appears company-specific, linked to heavy insider selling and increasing competitive pressure, including AMD's partnership with Tata Consultancy Services in India.
Read at 24/7 Wall St.
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