Seaport Research Partners issued a rare "Sell" rating on Nvidia (NVDA, Financial) in a new coverage note released Wednesday, flagging concerns over stretched valuation and bottlenecks in its supply chain.
The research firm, known for its cautious stance, initiated coverage with a $100 price target, well below Nvidia's current trading range. Analyst Jay Goldberg said the chipmaker remains a top beneficiary of AI-driven demand, but argued that the bullish outlook is already fully priced in.
“Nvidia's Blackwell chips are sold out for the year, but that's more a reflection of limited packaging capacity at Taiwan Semiconductor (TSM, Financial) than runaway demand,” Goldberg wrote. He also highlighted growing complexities in Nvidia's systems and uncertainty around returns on enterprise AI investment.
While Goldberg acknowledged the long-term promise of AI, he said the technology's real-world value could take years to materialize. “This doesn't look like a bubble,” he wrote, “but Nvidia may lag behind its peers as the market recalibrates.”
Shares of Nvidia remain down 2% on Wednesday trading.
