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Baird Downgrades Nvidia on China Curbs, AI Demand Worries
Baird cited slower AI capital spending and leadership uncertainty as it cut the stock to Neutral, while shares still rose 4% in morning trading.
- On Wednesday, Baird downgraded Nvidia to neutral from outperform, slashing its price target to $200 from $500. Despite the downgrade, Nvidia CEO Jensen Huang's company rose 4% in morning trading on November 11.
- Baird analyst Tristan Gerra cited uncertainty over whether Huang will remain at the company amid an investigation into his personal conduct, reportedly involving a Chinese businesswoman. Gerra also flagged potential U.S. export restrictions on chips to China.
- Morgan Stanley and Bank of America recently removed Nvidia from top pick lists as the stock remains down 30% from October highs. Gerra estimates a new China export ban could trigger a $5 billion write-down.
- Nvidia reports fiscal third-quarter results on November 17, which must validate its $108 billion revenue outlook issued in August. Baird stated the odds of a CEO transition are increasing into 2027 as leadership concerns weigh on the stock.
- Goldman Sachs analyst James Schneider called AI stocks 'clearly in oversold territory,' naming Nvidia, Broadcom, and AMD as top picks despite near-term uncertainty. Some analysts believe the stock will stay in a trading range until concerns settle.
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Baird downgrades Nvidia on China curbs, AI demand worries
Nov 11 - Baird downgraded Nvidia and cut its price target by 60% on Wednesday, citing growing risks from US restrictions on chip sales to China and a potential slowdown in AI spending that could weigh on demand for its prized chips. • The brokerage d...
NVIDIA Rises 4% Despite Baird Downgrade and Huang Uncertainty; AMD Climbs 5%, Broadcom Gains 4%
Baird slashed its NVIDIA price target by more than half and questioned whether Jensen Huang will still be CEO in 2027, yet buyers rushed in anyway. What spooked one analyst, and what is Goldman seeing that others miss?
·Lakewood, United States
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American investment bank Baird has lowered its recommendation for chip designer Nvidia to neutral from outperform, while cutting the target price to $200 from $500. This is reported by CNBC and several other media outlets.
Coverage Details
Total News Sources10
Leaning Left0Leaning Right1Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
C 80%
R 20%
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