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Following a successful quarter as American tech company, Nvidia reported twice the number compared to their expected earnings, the shares of the company have now dropped to as much as 7% on a negative tweet from Citron Research.

According to the tweet, the outlook for the company’s shares might drop down back to around $90 by 2017.

Citron Research stated that although they have been a fan of the company’s stocks, they are forecasting a rebound for the company by next year.

Citron Research also emphasized that the company is showing a slow growth outlook or a lack of evidence that the company is showing a steady growth given the amount of competition between data-center companies.

The criticism also showed that they believe that the shares of the tech company are overvalued as other rival companies like Advanced Micro Devices and Intel are poising a threat to Nvidia next year.

According to Andrew Left from Citron Research, other risks aside from growing competition are facing the company as it has been shifting its focus from gaming to data centers. Other markets and investors also believe that the main revenue driver for the company is from the gaming sector.

NVIDIA Stock Overview

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On Citron Research’s tweet regarding the company’s growth and 2017 outlook, Nvidia shares are still up by 231 percent this year and are still on top of the S&P 500 best performers for the year.

Nvidia Corp shares have recently declined on the weak 2017 outlook by 7% on Wednesday’s trading despite rising up by 3.6% during early trading.

Despite that, the shares of the company have grown by a three-fold throughout the year as it delivered successfully in the gaming and graphics sector with some of their revenue being accounted for by their work in the artificial intelligence sector.

Although the tweet from the research group has affected the shares of the company. Nvidia still holds a considerably huge net income to more than $500 million with their current EPS ranging from around 80 cents compared to last year’s 44 cents.

Nvidia shares are still set to continue on an upward trend as it is posed for bigger projects next year one of which is its partnership with Nintendo with the impending release of the Nintendo Switch.

Goldman Sachs have also upped their forecast for the American tech company as they announced that Nvidia shares are to continue rallying until next year thanks to their proliferation in the gaming, and artificial intelligence sectors.

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