Deutsche Bank Cautious On Nvidia's Growth Prospects, Reiterates 'Hold'
Wednesday, January 25, 2022 1:58 PM

Deutsche Bank (DB) reiterated its "Hold" rating on Nvidia Corp. (NASDAQ: NVDA) saying it remains cautious on the company's growth prospects.

The Santa Clara, California-based maker of graphics processors slashed its fourth-quarter revenue view to around $950 million, from prior expectations of $1.07 billion. Nvidia cited the downward revision to disk-drive shortage aftermath Thailand floods and rapidly-than-expected fall in Tegra 2 mobile business.

Though DB expects a flood-related rebound later in calendar year 2012, the bank anticipates the discrete GPU market to slow and competition to remain fierce in apps processors.

"When combined with the elevated opex necessary to compete in the ultra-competitive AP/baseband mkts, we believe EPS growth will prove challenging," DB wrote.

The bank inched down its price target on the stock to $14 from $15.

The stock, which has been trading between $11.47 and $26.17 over the past year, is down 0.78 percent to $14.82 on Wednesday.