On Monday, Nvidia shares fell as much as 3.9%. As of 11:21 AM ET, the stock had fallen 3.5%.  

Bearish comments by a few Wall Street analysts added to the chipmaker’s share price slump on a down day for technology stocks.

What’s going on

According to The Fly, Barclays analyst Blayne Curtis lowered his price target on Nvidia to $200 from $295 while maintaining an overweight (buy) rating. According to the analyst, despite recent gains, semiconductors will continue to decline in the near future.

Curtis suggested to clients on Monday that the rebound is a “head fake” and that earnings will fall significantly during the next 12 to 18 months. 

He’s not the only one who is sounding the alarm. Ross Seymore, an analyst at Deutsche Bank, was even more cautious, saying, “The ongoing ‘purgatory’ stage of the semiconductor cycle continues to be in full effect as we head into [second quarter 2022] earnings season.”

Soo…

Nvidia will not share its latest quarter’s results for another month, so analyst musings about the entire sector’s direction may not significantly impact the company’s results.

However, if Nvidia’s past results are any indication, things may not be as bad as analysts say. As of May 1, 2022, the company generated a record quarterly revenue of $8.29 billion, up 46% from the same period last year. Despite the one-time charge for terminating the Arm acquisition, adjusted earnings per share of $1.36 rose 49% to $1.36.

Despite its robust results, Nvidia stock has lost half its value in the ongoing bear market. This is a good opportunity for long-term investors to purchase Nvidia shares at a discount.