Seaport Maintains Sell on Nvidia, $140 Target Implies 21% Downside
NVDA•Seaport Research Partners maintained a Sell rating on Nvidia with a $140 price target implying roughly 21% downside, citing mounting pre-paid cloud compute obligations and customer financing burdens. The firm also warned that competition from Google’s TPUs and other AI hardware could exacerbate balance-sheet strain despite a 33% year-to-date rally.
1. Seaport Retains Sell Rating
Seaport Research Partners has reiterated its Sell rating on Nvidia, setting a $140 price target that represents a potential 21% decline from the most recent closing price.
2. Financing Obligations Weigh on Margins
The analyst highlighted that Nvidia’s pre-paid cloud compute commitments and expanded customer financing could pressure the balance sheet through deferred revenue recognition and increased funding requirements.
3. AI Hardware Competition Intensifies
Seaport warns that emerging alternatives such as Google’s TPU accelerators and other proprietary AI hardware solutions could erode Nvidia’s market dominance and margin profile over time.
