Party Is 'Over' For These Chip Stocks, Citi Analyst Says In Their "Top Call" - NVIDIA (NASDAQ:NVDA), Marvell Tech (NASDAQ:MRVL)


  • Citi analyst Atif Malik cut estimates and price targets on cloud data-centric semis Nvidia Corp NVDA and Marvell Technology, Inc MRVL
  • He maintained a Buy on Nvidia and reduced the price target to $210 from $248.
  • He also maintained a Buy on Marvell and slashed the price target to $71 from $74.
  • While his supply chain discussions continue to indicate cloud compute demand remains 15-20% above supply at U.S. hyperscalers, he noted slowing macro and advertising sales will likely impact cloud CAPEX growth to ~10% from 15% this year. 
  • Malik assumes no significant impact from new China controls. 
  • MRVL has low direct China data center sales exposure. 
  • Overall, long-term GPU computes and customized off-load ASIC demand remains in the early innings, and he expects new product cycles at NVDA (Hopper/Grace) and MRVL (PAM4/Off-load ASIC) to outperform cloud CAPEX. 
  • Malik cut his estimates and price targets based on lower estimates and market multiples. 
  • Price Action: NVDA shares traded lower by 0.76% at $115.81 on the last check Tuesday.


Image and article originally from Read the original article here.