This Analyst Says Nvidia Has ‘Limited Pricing Power’ for GPUs. Should You Sell NVDA Stock Now?

Adding to the recent pain for Nvidia (NVDA) was a downgrade by HSBC from “Buy” to “Hold,” with its price target cut from $175 to $120. The company’s GPU pricing power stalled, according to analyst Frank Lee, as a result of a lack of average selling price momentum on the B200 to B300 chips as well as the GB200 to GB300 NVL72 rack platforms. 

Lee opined that although the long-term potential of autonomous systems and AI robotics can increase Nvidia’s addressable market, these drivers are far away. Near-term threats include a peak in hyperscaler demand as well as growing competition from DeepSeek.