Nvidia is quickly erasing its huge gains from earlier in the week.
At the beginning of trading Friday, there was no reason to believe that Nvidia would do anything other than continue to go through the roof.
But then, a single analyst came out loudly as a bear when so many people were trying to outdo each other with more and more outlandish bull calls. That call was followed by a crash in the final hours of trading that almost knocked out all its gains from earlier in the week.
“While we are fans of NVDA emerging business in auto, gaming, and AI… have the prospects of these technologies doubled in value in 6 months or is this an example of analysts chasing stock price?” Citron, a research firm, asked in a white paper released Friday.
The white paper was discussed widely on Twitter and trended under searches for Nvidia stock. Markets Insider wrote a story about the paper Friday morning. At the time of that story, Nvidia was up around 5%. Since then, only hours later, Nvidia is down about 10% from its Friday open.
Nvidia now seems to be following its fellow tech stocks into the ground. The general markets were weighed down Friday by tech stocks everywhere losing.
Citron said the bullish calls by fellow Wall Street operators UBS, RBC, and Citi were overblown. As the bulls point to growing artificial intelligence, data center, and machine learning demands, Citron points out that their core business, gaming computers, has no reason to rapidly expand soon.
Citron says the stock will fall to $130. Around 2:50 P.M. ET, it was trading around $144 after falling 10% Friday.