While waiting for Blackwell's increased production, Phillip Capital has put Nvidia into an unprecedented downgrade.
Nvidia (nasdaq:nvidia) has been downgraded from Buy to Accumulate by PhillipCapital due to recent price fluctuations awaiting the Blackwell ramp.
However, PhillipCapital has slightly raised Nvidia's target price from $155 to $160. During Friday's trading, Nvidia's stock price fell by about 2.5%. They have been essentially flat over the past month.
PhillipCapital analyst Ik Van Chung said, "Hyperscalers are upgrading their AI cloud capabilities to seize the opportunity of cloud services from next-generation AI startups. Sales of the H200 Hopper have increased to tens of billions, the fastest product ramp in the company's history, and NVDA indicated that the demand will continue at least until 2H26."
"Blackwell has just started production in Q4 of 25, and NVDA is expected to exceed previous 'tens of billions of dollars' in revenue," he added. "NVDA previously stated that it expects supply and demand to reach equilibrium by FY26e."
An investment firm expects a slowdown in Nvidia's post-tax profits and minority growth after Blackwell product shipments around mid-26.
Nevertheless, PhillipCapital considers Nvidia a clear leader in the AI GPU market as Blackwell processors offer 2.2 times the performance of Hopper.
The prospect of an increase in trade tariffs between the USA and China may also impact stock values.
"Due to the escalation of the US-China trade war that began in July 2018, NVDA's stock price dropped by over 50% from its peak in October 2018," said Chong. "If similar tariff policies were reimposed, it could significantly affect NVDA's stock price."
However, in 2019, China accounted for 24% of Nvidia's revenue, which has now dropped to around 13%. In 2018, the stock price plummeted from a high of $7.03 to a low of $3.24, making the over 50% stock price drop significantly different from current prices.
PhillipCapital is an investment and asset management company headquartered in Singapore. Its rating system is partly based on total revenue. Buy ratings are applied to stocks expected to return over 20% to shareholders, while cumulative ratings are expected for total returns in the range of 5% to 20%.
However, PhillipCapital has slightly raised Nvidia's target price from $155 to $160. During Friday's trading, Nvidia's stock price fell by about 2.5%. They have been essentially flat over the past month.
PhillipCapital analyst Ik Van Chung said, "Hyperscalers are upgrading their AI cloud capabilities to seize the opportunity of cloud services from next-generation AI startups. Sales of the H200 Hopper have increased to tens of billions, the fastest product ramp in the company's history, and NVDA indicated that the demand will continue at least until 2H26."
"Blackwell has just started production in Q4 of 25, and NVDA is expected to exceed previous 'tens of billions of dollars' in revenue," he added. "NVDA previously stated that it expects supply and demand to reach equilibrium by FY26e."
An investment firm expects a slowdown in Nvidia's post-tax profits and minority growth after Blackwell product shipments around mid-26.
Nevertheless, PhillipCapital considers Nvidia a clear leader in the AI GPU market as Blackwell processors offer 2.2 times the performance of Hopper.
The prospect of an increase in trade tariffs between the USA and China may also impact stock values.
"Due to the escalation of the US-China trade war that began in July 2018, NVDA's stock price dropped by over 50% from its peak in October 2018," said Chong. "If similar tariff policies were reimposed, it could significantly affect NVDA's stock price."
However, in 2019, China accounted for 24% of Nvidia's revenue, which has now dropped to around 13%. In 2018, the stock price plummeted from a high of $7.03 to a low of $3.24, making the over 50% stock price drop significantly different from current prices.
PhillipCapital is an investment and asset management company headquartered in Singapore. Its rating system is partly based on total revenue. Buy ratings are applied to stocks expected to return over 20% to shareholders, while cumulative ratings are expected for total returns in the range of 5% to 20%.
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☆ラジエル★ : In terms of market timing, the market environment tends to be bullish, such as the anomaly (experiential rule) that "stocks tend to rise after the US presidential election", expectations for the Christmas shopping season, and year-end rallies.
However, considering that this year may have a different development from usual, it may be better to approach trading with the assumption of the end of the bullish market that has continued so far.
Quote from Toushiru
It's exactly the same perspective as mine. Only US stocks are rising too much. I would be happy to see a rally in the bullish market.
Kimihiko OP : Even though I have downgraded, the target price is increasing?
☆ラジエル★ Kimihiko OP : Everyone might be getting confused
, it's because of Trump 
. Thank you for always providing accurate information♪
NOIR(のあ) : Even if we say it's a downgrade, it means to buy like lifting the offer, right? It's like buying when pushed from lifting the offer. It's a buy since it dropped more than 3% (laughs).