NEW YORK (TheStreet) -- Shares of Nvidia (NVDA) - Get Report were falling 2.9% to $22.78 Monday after Goldman Sachs downgraded the graphics card manufacturer to "sell" from "neutral."

The analyst firm set a price target of $20 for the chipmaker.

Goldman Sachs analyst James Covella views Nvidia as a "high-quality company with best-in-class technology and strong management," but warned of a potential "licensing cliff." Covella said, "We believe the market has become complacent about the risk of Intel licensing revenue going away (with few sell-side analysts highlighting licensing in analyst day takeaways)."

The analyst continued, "Our SanDisk, Qualcomm and pharma case studies suggest stocks see 15%-60% multiple compression going into binary events where licensing/patents are in jeopardy. We believe the near-term catalyst to refocus investor attention on longer-term normalized EPS will be weakness in PC fundamentals (which Nvidia noted it is not seeing at its analyst day). We highlight that business tied to the broader PC ecosystem is 55% of EBIT today, with PC OEMs particularly at risk (15%-20% of EBIT ex. licensing)."

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Separately, TheStreet Ratings team rates NVIDIA CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate NVIDIA CORP (NVDA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows: