• Melius Research reportedly slashed its Nvidia price target to $315 from $420, though the timing and rationale remain unclear.
  • The reported target sits below the consensus analyst target of $321.89, signaling potential caution on the AI chipmaker's valuation.
  • Nvidia's fundamentals remain strong, with quarterly revenue up 105.9% year-over-year and a $150 billion share-repurchase program authorized.

Melius Research has cut its price target on Nvidia to $315 from $420, according to reports, a move that would place the analyst's outlook below the consensus target of $321.89. The precise timing and reasoning behind the revision could not be immediately confirmed, and details remained murky. Earlier reports showed Melius raising its target to $420 from $400 in late August, while a separate report in early September cited a $380 target. Representatives at Melius did not respond to requests for comment.

Nvidia, the dominant designer of GPUs and AI accelerators, has been a standout performer in the semiconductor sector. Its latest reported quarterly revenue surged 105.9% year-over-year, driven by insatiable demand for its data-center products. In a show of confidence, the board authorized a $150 billion share-repurchase program. Analysts have largely remained positive on the stock, with many citing the company's entrenched position in the AI ecosystem.

The reported cut to $315, if accurate, would imply a more cautious stance from Melius, though it's unclear whether the revision reflects valuation concerns, competitive pressures, or other factors. Nvidia's shares have been volatile amid broader market swings, and investors are closely watching for any signs of a slowdown in AI spending. The company's next earnings report could provide further clarity.

Earlier this month, Nvidia's stock traded in a narrow range as investors digested mixed signals from the chip sector. Some analysts have pointed to rising inventory levels and potential supply chain constraints, while others remain bullish on the long-term trajectory of AI infrastructure spending. The reported target cut adds to the debate but lacks the context needed to draw firm conclusions.

Without a clear rationale from Melius, the move may be more noise than signal. Nvidia's fundamentals remain robust, and the consensus target still hovers above $320. For now, the market appears to be taking the report in stride, with shares edging slightly lower in premarket trading.

Correction: An earlier version of this article misstated the timing of Melius Research's price target changes. The firm raised its target to $420 from $400 in August, not $420 from $400 in September.