'Crypto strikes again': Here's what Wall Street is saying about Nvidia's underwhelming earnings

Price target: $260 (from $310)

Rating: Outperform

"Crypto strikes again along with data center softness," said Mitch Steves, an analyst at RBC Capital Markets.

"Nvidia reported results and guidance below expectations due to 1) gaming inventory - crypto currency chips being returned, 2) data center coming in lighter than expected at $792M (Street $820M) and 3) guided gaming down ~30% q/q for gaming. Overall, while this is a material set-back for the stock we note that the long-term secular trends remain the same: Data Center - AI, Autonomous in 2020 and VR ramps in 2020 and beyond. Going forward, we think the focus will now shift to Data Center as gaming expectations are now reset due to crypto currencies and a product transition (Turing) which will unlikely ramp until around the Jul-qtr time frame."

Price target: $246 (from $320)

Rating: Buy

"Crypto reset — still a top secular growth story," said Jefferies analyst Mark Lipacis.

"October quarter missed, but the January quarter Revenue/EPS outlook is 21%/36% below consensus due to high crypto GPUs in the channel. We forecast JanQ gaming GPU revs decline by 35% QQ as NVDA clears channel inventories. We lower our ests and price target, but model gaming revs resume QQ growth in the JulQ. The JanQ reset is a setback, but we continue to view NVDA as a top play on secular themes in AI, Gaming and A/V."

Price target: $237 (from $316)

Rating: Buy

"Long-term thesis seems intact; Buy the dip," said William Stein, an analyst at Suntrust Robinson Humphrey.

"The surprisingly weak Q4 guide appears temporary. NVDA guided Q4 ~20% below consensus revs as the company halts ~1/3 of gaming segment sales to flush channel inventory built during the crypto enthusiasm in 1H18. This badly damages near-term revenue and profits, but Datacenter, Pro-Viz, and Automotive results support our structural growth view."