Nvidia stock gets a rare downgrade post 154% returns, valuation concerns remain

Nvidia Corp.’s stock rally has lost momentum, prompting Pierre Ferragu of New Street Research to downgrade it from a buy to a neutral rating, citing the stock as “fully valued.” After a 154% surge this year following a 240% gain in 2023, Nvidia’s shares fell 1.9% on Friday while the Nasdaq 100 rose 1%. Ferragu maintains the franchise's quality but notes risks of derating. Despite high valuations, Nvidia remains a key player in the AI sector, with a one-year target price of $135.