Why Nvidia Stock Slumped on Wednesday

Shares of Nvidia (NASDAQ: NVDA) traded lower on Wednesday, falling as much as 5.1%. As of 11:26 a.m. ET, the stock was still down 3.9%.

The catalyst that sent the chipmaker lower today was bearish commentary by a Wall Street analyst that could signal additional declines for the sector.

Bank of America analyst Vivek Arya lowered his price target on Nvidia to $220, down from $270, while maintaining his buy rating on the stock, according to The Fly. Even at the lower price target, this represents potential upside for investors of roughly 38% compared to Nvidia's closing price on Tuesday. It's also worth noting that his bearish view wasn't necessarily company-specific to Nvidia.

Source Fool.com