Nvidia Stock Falls Despite Price Target Increase Amid AI Sector Concerns
Nvidia (NVDA) shares experienced a 3.5% decline, closing at $175.64 on Tuesday, despite TD Cowen raising its price target on the stock to $235 from $175 and reiterating a “Buy” rating on the stock.
The NVDA share price movement reflects broader market apprehension regarding the sustainability of the artificial intelligence (AI) boom and increasing competition within the AI chip market.
The Nasdaq-listed stock’s decline occurred within a wider tech sell-off, with the Nasdaq Composite falling 1.4%, its largest single-day drop since August 1, and the S&P 500 decreasing by 0.6%.
Markets are showing skepticism regarding the long-term profitability of AI technologies. A report from the Massachusetts Institute of Technology indicated…
