"Nvidia Stock Faces 15% Downside Amid AI Disillusionment, Analyst Warns"

DA Davidson analysts have initiated coverage on Nvidia stock with a Neutral rating and a price target of $410, suggesting a 15% downside risk. They acknowledge Nvidia's leadership in accelerated computing but are cautious about the sustained hype in AI investments, predicting a reversion to the trend line in the next 2-6 quarters as the sector hits the "trough of disillusionment." Despite the potential for generative AI, they expect a slowdown in investment levels after 2024. Nvidia's stock has already seen a decline in its price in early 2024 trading.