Nvidia (NASDAQ:NVDA) is off 6% to a three-week low after a Pacific Crest downgrade to Underweight, from Sector Weight.
The firm cut its EPS estimates for fiscal 2018 to $2.50 from $2.60 (GAAP consensus is $2.82 and non-GAAP consensus is $3.33), and for fiscal 2019 to $3.00 from $3.30 (GAAP consensus is $3.30 and non-GAAP $3.82).
Analyst Mike McConnell sees desktop PCs becoming saturated and a possible pause in Datacenter business, all against an environment of no growth for desktop graphics card makers. He also sees a $0.10 impact to EPS based on low-margin Nintendo Switch revenue.
He has a price target of $105.15, implying just 3% upside from today's lower price.