Nvidia slips as Daiwa downgrades chip giant, citing 'too many uncertainties'
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Nvidia (NASDAQ:NVDA) shares slipped on Friday as investment firm Daiwa Securities downgraded the semiconductor giant, citing "too many uncertainties."
Analyst Louis Miscioscia lowered his rating on Nvidia (NVDA) to neutral from buy, while also cutting his price target to $133 a share from $215, noting that Nvidia (NVDA) should have monitored the channel inventory problem better.
"We would assume that a company with the resources of NVIDIA would be able to monitor this situation better, and not lead to massive resets," Miscioscia wrote in a note.
In addition to Nvidia's (NVDA) weak second-quarter and third-quarter guidance, which the company reported last month, concerns over lower growth potential, restrictions on selling certain products in China and a high valuation led to the downgrade.
"If one assumes that a PE should match somewhat a growth rate, with top and bottom line growth being reduced materially over the next twelve months, and then uncertainty of the go forward normalized growth numbers, a PE of 42x FY23 is just too high," the analyst added.
Nvidia (NVDA) shares fell 0.5% to $138.65 in premarket trading.
Earlier this week, Nvidia (NVDA) and Advanced Micro Devices (AMD) both said they had received warnings from the U.S. government to curb sales of some products from China to Russia.
Nvidia (NVDA) said the move could potentially cost it $400M in revenue, while AMD (AMD) said the curb was not material to its results. 
However on Thursday, Nvidia (NVDA) said the U.S. government had authorized exports of its H100 integrated circuits, while also allowing order fulfillment and logistics of its A100 and H100 integrated circuits via the company's Hong Kong facility through September 1, 2023.
The news resulted in Nvidia (NVDA) shares falling their most since March 2020 as investors digested the news. The losses raised more concerns about whether investors should consider putting their money into Nvidia's (NVDA) stock for the near future.
Last month, UBS said Nvidia (NVDA) and Advanced Micro Devices (AMD) have seen "consistently lower pricing" for their GPUs over the past few months, but the rate of decline has slowed down.
Analysts are largely cautious on Nvidia (NVDA). It had an average rating of HOLD from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates NVDA a HOLD.