Shares of Nvidia Corp. are down 1.5% in premarket trading Monday after Bernstein analyst Stacy Rasgon cut his rating on the stock to market perform from outperform, writing that the shares "are likely to remain hamstrung" in the medium term. He also cut his target price to $175 from $250. "While painful, we could have lived with the inventory flush Nvidia called out in their first Nov. gaming cut," Rasgon wrote. "But the latest cut appears much more fundamentally demand-driven, with the question of the 'true' run-rate of the gaming business remaining up in the air for now." He's still a believer in Nvidia's data-center business but said that the business has grown considerably over the past 18 months, meaning that Nvidia "has to show ever-increasing growth off of a base that is growing ever larger," which increases headline risk. "And tactically the near-term cloud spending environment is unfavorable, driving near-term downside," Rasgon wrote. Nvidia's stock is off 28% over the past three months, as the S&P 500 has lost 2.6%. The company reports earnings on Thursday afternoon.