Short-seller Andrew Left has a new target

Citron Research has a new target for the new year: Nvidia Corporation.

The firm founded by Andrew Left, and central to unraveling allegations of fraud at Valeant Pharmaceuticals, tweeted  that shareholders are discounting six risks for Nvidia in 2017. 

"Citron readers know we have long been fans of $NVDA, but now the mkt is disregarding headwinds," Citron tweeted.

Shares of the maker of processors for video games fell by as much as 3% on Wednesday after the tweet.

In brief, Citron said:

• Nvidia's growth has come from its gaming division and by taking market share from competitor Advanced Micro Devices, not from new markets.
• There's "significant competition" from several players, including AMD and Intel, which could hurt gross margin in the new year. 
• Investors may be overstating the value of Nvidia's intellectual property. A patent cross license agreement with Intel could hurt profitability in 2017.

Nvidia is the best performer on the S&P 500 this year, and is up 245% year-to-date after Wednesday's pullback. Citron said it sees the stock heading back to $90 per share, down about 21% from current levels.