Nvidia gets rare Wall Street downgrade on valuation concerns

New Street Research is raising the alarm on shares of Nvidia after the chip giant's June rally. Analyst Pierre Ferragu downgraded the dominant manufacturer of semiconductors used in artificial intelligence to neutral, citing limited upside.

Any negative opinion on Nvidia is pretty much unheard of these days on Wall Street. Of the 41 analysts covering the stock, 38 give it a buy rating, while three say it is a hold, according to TipRanks.com . No analysts say it is a sell. There was only one other downgrade of Nvidia from buy to hold this year, by Germany's DZ Bank in May. Given this contrarian outlook, New Street set a $135 price target on Nvidia, assuming a 35 times multiple, in line with its 2019 and early 2020 multiple.

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