Nvidia Falls as Citron Research Says Stock ‘Belongs at $90’
Jen-Hsun Huang, chief executive officer of Nvidia.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Shares of graphics chipmaker Nvidia Corp. fell the most in almost month after an investment newsletter run by activist short seller Andrew Left said the stock “belongs at $90.”
Nvidia has more than tripled this year to $117.32 at Tuesday’s close. Left’s Citron Research listed six risks that shareholders are discounting, including that much of Nvidia’s growth comes from gaming and at the expense of rival Advanced Micro Devices Inc., as opposed to from new markets. Citron also said there is significant competition from existing and emerging players and the arrival of Intel Corp. into the fray in mid-2017 could have a “significant impact” on Nvidia’s gross margins.