The core market is frustrated, and NVIDIA is being shrouded in gloom

  NVIDIA has suffered several recent blows and its share price has plummeted by more than 40% in the past six months. Bernstein announced that it has lowered its NVIDIA rating because the demand for NVIDIA graphics cards is not as good as expected.

According to CNBC, Bernstein analyst Stacy Rasgon released a report that lowered the NVIDIA rating from Outperform to Market Perform. The target price also dropped from $250 to $175.

Rasgon said that the NVIDIA chip is weak in the game market and data center. NVIDIA's new high-end game chip sales are worse than expected, and few games use the chip's ray-tracing and other functions. The sales of NVIDIA graphics cards were also frustrated when the previous cryptocurrency price plummeted and the mining atmosphere fell, but this time it seems that the company's core market, the game and data center, has been hit.

On January 28th, Nvidia had admitted that the overall environment had deteriorated, especially China, which announced that it would cut its revenue to $2.2 billion in the fourth quarter of this fiscal year, far below the market forecast of $2.7 billion. The Rasgon report also pointed out that NVIDIA's downgrade outlook seems to be caused by demand, and the actual performance of the company's gaming business remains unclear. Risks may continue to increase, such as the recent cloud spending environment is getting worse.