Nvidia shares drop to three-month low after downgrade

The Nvidia Shield Android tablet.
The Nvidia Shield Android tablet.

Shares of graphics chip company Nvidia tumbled more than 9 percent to a more than three-month low Thursday after analysts downgraded the stock.

"We believe consensus is underappreciating a slowdown in gaming" and "investors should recognize that the market's enthusiasm for Nvidia's emerging businesses [in data centers and automotive] is historically short-lived," Nomura Instinet analyst Romit Shah wrote in a Wednesday note to investors.

Shah downgraded the stock to a reduce rating from a buy, dropping his price target from $100 to $90 a share, or about 19 percent below Wednesday's close.

Nvidia shares closed 9 percent lower at $100.49 a share, their worst daily performance for the year so far. Shares are up more than 200 percent over the last 12 months.

BMO Capital Markets downgraded the stock from market perform to underperform based on the view that shares are overvalued, StreetAccount said.

Back in December of 2016, Nvidia shares fell sharplyafter noted short-seller firm Citron Research sent out the following tweet:

Nvidia year-to-date performance

Source: FactSet