- Thomson Reuters
- Nvidia dropped 10% on Tuesday after saying it was halting self-driving tests following a fatal crash.
- Morgan Stanley analyst Joseph Moore told clients that dip was an overreaction.
- You can follow Nvidia’s stock price in real-time here>>
As Nvidia CEO Jensen Huang showed off some of the company’s latest tech developments on stage at its 2018 GPU Technology Conference in California on Tuesday, the stock was being clobbered for entirely different reasons.
After an unnamed source told Reuters the company was shutting down all of its self-driving tests in New Jersey, California, Japan, and Germany, shares of Nvidia tanked more than 10% – and continued to sink on Wednesday.
“We do see today’s selloff around the automotive pause as an overreaction,” Morgan Stanley analyst Joseph Moore said in a note to clients Wednesday highlighting some of the new tech announced at the conference.
“The company is not of the view that it has done anything wrong and does not see it as a long term setback, which we basically agree with.”
Morgan Stanley maintains its equal-weight rating for shares of Nvidia, with a price target of $258 – 18% above where the stock was trading Wednesday morning.
Was Street also remains bullish on Nvidia, despite the selloff, with an average price target of $250, according to Bloomberg. The stock was one of the top performing equities in 2017.
“We would expect data points to be a bit more mixed in the gaming space as mining related shortages come to an end in the next few months, but would see that as a potential buying opportunity with a significant new product cycle coming,” Morgan Stanley said. “With that context, we are equal-weight the stock.”