Nvidia falls as Citi lowers gaming-related estimates, adds data center strength 'intact'
Antonio Bordunovi


Nvidia (NASDAQ:NVDA) shares fell on Tuesday as investment firm Citi cut its estimates related to gaming, but said strength in the data center is still "intact."
Analyst Atif Malik kept the firm's buy rating on Nvidia (NVDA) shares, but lowered adjusted earnings in 2022, 2023 and 2034 by 9%, 7% and 5%, respectively due to a potential correction in gaming-related revenue, citing "below seasonal PC demand" and elevated inventory at retail.

However, the firm left data center sales intact as hyperscalers are still constrained by server capacity.
"We remain Buy rated as the stock is trading at 24x P/E vs 20x prior trough levels, showing majority of the gaming weakness is mostly priced-in," Malik wrote in a note to clients, while also lowering the price target on Nvidia (NVDA) to $285 from $315.
Nvidia (NVDA) shares fell slightly more than 1% to $149.80 in premarket trading.
On Monday, investment firm UBS reiterated that Nvidia (NVDA) was among its favorite semiconductor stocks, despite worries that weakening consumer demand, confidence and rising inventories are hurting the sector.