Morgan Stanley downgrades the hottest chip stock in the market today — Nvidia

Jensen Huang, president and CEO of Nvidia, speaks during the company's event at the 2019 Consumer Electronics Show in Las Vegas on Jan. 6, 2019.
David Paul Morris | Bloomberg | Getty Images

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This year's red-hot stock Nvidia got a rare downgrade on Tuesday from Morgan Stanley.

The bank slashed the chipmaker's rating to "equal weight" from "overweight," saying there's less space for upside given the elevated valuation after the massive rally this year.