Baird downgraded Nvidia and cut its price target by 60%, citing uncertainty around 2027 data-center forecasts and CEO Jensen Huang’s tenure, Reuters reported Wednesday.
Reuters said Baird changed its rating to Neutral from Outperform and reduced its target to $200 from $500. The brokerage’s concerns included limited visibility into data-center forecasts and uncertainty over Huang’s tenure.
Analyst Tristan Gerra said AI capital spending by large cloud companies could grow by 40% or slightly less in 2027, Investing.com reported. The outlet also said Gerra cited supply constraints and the possibility of softer demand. In a scenario from his note reported by Investing.com, a sudden loss of China-related demand could hurt Nvidia’s revenue, while U.S. hyperscalers could absorb some weakness in Southeast Asian channels.
Morgan Stanley also changed its designation for Nvidia after a steep decline in the shares. Reuters reported the stock had fallen more than 25% since the bank named it a Top Pick on Oct. 2. Morgan Stanley kept its Overweight rating; Investing.com said the removal followed the bank’s stop-loss policy.
The latest reduction follows Melius Research’s cut of Nvidia’s target to $315, previously reported by EconoTimes.
Separately, Nvidia’s board announced an independent investigation on Nov. 8 after reports that Huang had been targeted in a foreign intelligence effort. The board said, “The Board has no reason to believe that either national security or NVIDIA secrets were compromised.” On Nov. 10, independent directors said they had retained former acting U.S. Attorney of the Southern District of New York Joon H. Kim and Wachtell, Lipton, Rosen & Katz to conduct the investigation.
Nvidia scheduled its fiscal third-quarter 2027 results call for Tuesday, Nov. 17, at 5 p.m. ET (2 p.m. Pacific). The quarter ended Oct. 25.
