Nvidia's stock faced downward pressure on January 30th after Punto Casa de Bolsa downgraded the semiconductor giant to a "Sell" rating, setting a price target of $112. This bearish outlook comes amid concerns over Nvidia's valuation and potential headwinds in the semiconductor industry. The downgrade by Punto Casa de Bolsa, a notable research firm, suggests that Nvidia's current market price may not be sustainable, prompting investors to reassess their positions.
The downgrade has sparked a significant increase in trading volume, with Nvidia's shares trading at 166.56% of their average daily volume. This heightened activity indicates that the market is reacting strongly to the revised outlook. Nvidia's stock closed at $124.65, a 0.77% increase from the previous day's close of $123.7, but it has since declined by 1.24% in after-hours trading, bringing the price to $123.1.