Analysts Are Cutting Price Targets on Nvidia Stock. Here's Why.

Nvidia (NVDA) shares opened lower on Tuesday as both Citi and Wells Fargo trimmed their price targets on the artificial intelligence (AI) giant ahead of its Q3 earnings scheduled for Nov. 17. Consensus is for NVDA to report $2.49 in earnings per share (EPS) for its third financial quarter, which would represent a remarkable 101% increase on a year-over-year basis. 

Nvidia stock has come under immense pressure amid a broader artificial intelligence (AI) rout in recent weeks, currently trading about 30% below its year-to-date high. 

Citi Has Not Turned Bearish on Nvidia Stock

Citi analyst Atif Malik continues to rate Nvidia at “Buy,” but he reduced the price objective to $285, reflecting a more measured outlook on valuation despite expectations of another earnings beat.

“We expect higher sales to be offset by lower gross margins due to HBM price increases,” he told clients. 

Malik expects management’s commentary on supply and demand dynamics, and the pace at which backlog is converting into revenue to set the direction for NVDA shares.  

In his research note, the analyst also dubbed the recent investigation involving CEO Jensen Huang as “significant” for investors evaluating the AI stock.  

Wells Fargo Also Remains Bullish on NVDA Shares 

Wells Fargo also remains constructive on Nvidia shares, but its analyst Joe Quatrochi still lowered his price target on the chipmaker this morning to $300. 

While the investment firm expects the CEO investigation to remain an overhang in the near term, it remains comfortable with the stock’s risk-reward profile at current levels. 

“We expect NVDA to deliver solid upside in F3Q27 — but more importantly provide much needed confidence in the durability of the AI investment cycle,” Quatrochi wrote in his report. 

Note that the AI stock’s relative strength index (RSI) currently sits in the early 20s, indicating oversold conditions that often trigger a near-term rally. 

Wall Street’s Consensus View on Nvidia

Other Wall Street analysts also remain bullish on NVDA stock heading into the AI darling’s fiscal Q3 earnings next week. 

The consensus rating on Nvidia sits at “Strong Buy,” with the mean price objective of roughly $327 signaling the company’s share price could nearly double from here in the months ahead. 

On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.