Nvidia stock falls nearly 8% in October amid AI spending doubts
Nvidia's stock dropped 8% in October as investors reacted to concerns about AI spending cuts. The article cites TIKR data showing 59 Buy/Outperform ratings, 2 Holds, 1 Sell, and a lowest street target of $180. Seaport Research's Jay Goldberg has maintained a Sell rating since April 2025 and kept the $180 target in an October 22 note, noting that Nvidia added roughly $250B of commitments last…
Key points
- Nvidia stock fell nearly 8% in October amid AI spending doubts.
- Seaport Research’s Jay Goldberg keeps a Sell rating, citing $250B commitments and a $500B funding platform that could reach $1T.
- Net cash dropped to $23.61B, long‑term debt rose to $32.37B, and operating cash flow is estimated at $200B this year.
Goldberg argues Nvidia is over‑taxing its balance sheet to finance customers, labeling the financing as a discount in disguise. He points to the company's net cash falling to $23.61B from $54.09B at the end of January, while long‑term debt rose to $32.37B by July 26 from $7.47B. He estimates operating cash flow at around $200B this year, close to street estimates for the fiscal year ending January 2027.
The article notes that some partners, such as AI cloud provider Nebius, declined to join Nvidia's guarantee program. TIKR tracks 62 analysts on Nvidia and serves over 500,000 investors. The stock’s current price is $210.96, with a mid target of ~$516 and a street target of ~$329, implying a potential total return of ~145% and an annualized IRR of ~23% per year.
Nvidia Stock Fell Nearly 8% in October as AI Spending Doubts Hit Tech Stocks. Here’s Where the Stock Could Go by 2031
finance.yahoo.com · 25 October 2026Loading the full article…
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