Nvidia shares dropped Wednesday after Citron Research tweeted it sees the stock going back to $90 in 2017.
@CitronResearch Citron readers know we have long been fans of $NVDA,but now the mkt is disregarding headwinds. In 2017 we will see $NVDA head back to $90
The stock fell 7 percent to $108.69, but later recovered some of those losses. It ended the day more than 6 percent lower at $109.25.
The short-seller firm cited risk from "emerging" data center competition next year from Intel and Advanced Micro Devices. In addition, Citron Research said Intel has a profit margin advantage as it manufactures chips itself.
"There's a lot of risks to this business going forward," Citron Research's Andrew Left told CNBC's "Fast Money" on Wednesday. "It's really transferring their revenue from where it is right now — gaming — to data centers. It's capturing more of the auto market. It's maintaining margins. Obviously they have AMD coming into the gaming market. ... If you own the stock, the easy money's been made."