UBS Analysts Just Slashed Their Price Target on Nvidia Stock. Should You Ditch Shares Now?

Nvidia (NVDA) finds itself in the news after UBS reduced its price target on the artificial intelligence (AI) chip giant to $180 from $185 based on new U.S. export restrictions on advanced chips that target China. The price target adjustment, although minor, is on top of other emerging concerns about Nvidia’s near-term decline in gross margins as well as delays in architecture. As shares have risen nearly 270% over the last two years, investors closely monitor any possible cracks in Nvidia’s growth story.

The timing of UBS’s downgrade is also crucial. Relations between the U.S. and China on semiconductor technology are flaring again, and Nvidia’s H20 GPU, originally designed for the Chinese market, is now facing regulatory heat. UBS is projecting a $9 billion hit to Nvidia’s top line, with most of that impact reverberating in its fiscal Q2 and Q3.