The current bull market has been a boon for many investors, with stocks like Nvidia leading the charge with impressive gains. However, not all stocks are expected to continue rallying to new heights in the coming months.
According to data from LSEG, CNBC Pro has identified several stocks in the Nasdaq 100 that analysts believe could see a significant pullback of at least 5% or more. Among the names on the list are Nvidia, Lam Research, KLA, Qualcomm, and Texas Instruments.
Nvidia, which recently completed a 10-for-1 stock split, has been on a tear this year, with a staggering 176% increase in its stock price. Despite analysts giving the stock a buy rating, the consensus price target suggests an 11% pullback from its current level. Bespoke Investing Group even went as far as to call Nvidia a “megacap stock in extreme overbought territory.”
Lam Research, another semiconductor equipment maker, has also seen significant gains this year, climbing 34% after announcing a $10 billion share buyback plan and a 10-for-1 stock split. Semiconductor stocks KLA, Qualcomm, and Texas Instruments have also posted impressive gains in 2024, but analysts believe they could soon see a pullback.
With the overall stock market looking optimistic and a series of rate cuts on the horizon, investors are hopeful that the rally will continue. However, it’s important to keep an eye on these stocks that analysts believe could be poised for a selloff in the near future.
