Nvidia unlikely to see V-shaped recovery with 'weak consumer demand,' Baird says
Antonio Bordunovi

After Nvidia (NASDAQ:NVDA) said on Monday that it expects to report a weaker-than-expected second quarter, investment firm Baird said the semiconductor company is unlikely to see a V-shaped recovery and estimates are likely to come down even further. 
Analyst Tristan Gerra, who has neutral rating on Nvidia (NVDA) and a $150 price target, noted that the environment for a rebound similar to 2020 "is just not there," due to high channel inventories, weak consumer demand and the move from Ethereum to proof of stake, which could result in more pressure on inventories. 
"While the sharp and below-expectation slowdown in data center revenue in the quarter was due to supply chain disruptions, according to Nvidia, we model slowing [year-over-year] and [quarter-over-quarter] comps ahead," Gerra wrote in a note to clients.
Nvidia (NVDA) shares fell more than 5% to $168.55 on Tuesday, moving lower in conjunction with Micron's (MU) weak outlook for the fourth quarter.
In addition, Gerra noted that the $3.81B in data center revenue, which Nvidia (NVDA) said it would be up 1% sequentially and 61% year-over-year, was a miss relative to expectations. Data center revenue is expected to see "a continued slowdown in comps throughout at least the next three quarters," Gerra added.
Separately on Monday, Nvidia (NVDA) was named one of the top 30 most attractive stocks at Citi, based on fundamentals, sentiment and valuation.