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Seaport Research analysts initiated coverage of Nvidia (NVDA), giving the artificial intelligence (AI) chipmaker stock a Sell rating. The analysts say Nvidia's opportunity is already priced in and raise concerns about competition in the semiconductor and AI space. Seaport highlighted Broadcom (AVGO) as an alternative stock pick.
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Nvidia given a rare cell rating. Seaport research initiating coverage on the stock with a bearish call, as it highlights that upside appears to be fully understood and largely priced into the stock. So, Seaport here initiating coverage really on the semis. This is kind of a broader note, but they do include here a sell on Nvidia. Uh and among their reasons, they told their clients, AI priced in for now, they say. They talk about how its prospects are well understood, largely priced in. They talk about mounting questions as to the utility of AI. They also call out competition. They say, from Nvidia's customers, they see strong momentum behind the cloud giants' internal Nvidia alternatives.
What's so striking about this is, this is the only sell
Mhm.
on Nvidia from Wall Street. I believe it is the only one. There are some hold ratings, but there aren't really any other sell ratings. So, this is really a standi-, yep, there you go. 70 buys, nine holds, only one sell. So this really stands out, um, in terms of its commentary and that it's not just going to a hold, it is going to a sell. As we know, we don't get Nvidia earnings until later than the rest of the group, about a month from now. Uh we did hear from Super Micro Computer which came out, um, with some preliminary results that were weak. And so, there are some assuming read-through that the the market is assuming, at least, from those results.
Is that true? Yeah. It's the
Yeah.
By the way, what do they like? Also important. Broadcom. Broadcom is a buy, they say, AI not priced in there.
Yes, that's right.
Buy, they say? Right.
Well, because they think that more companies are going to make their own, get Broadcom to make custom chips for them. And so, that's part of that.
Yeah.
So, sell Jensen Wong, buy Hock Tan.
Oh, interesting.
Yeah.