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Baird downgrades Nvidia and cuts target to $200 as Morgan Stanley drops top-pick status

Baird downgraded Nvidia to Neutral and slashed its price target by 60% to $200, citing an impending slowdown in artificial intelligence spending and growing uncertainty surrounding CEO Jensen Huang.

A smartphone displaying the Nvidia logo held up in front of a digital screen filled with financial stock market numbers and light streaks.
Image: @qz

Baird downgraded Nvidia from Outperform to Neutral and reduced its price target from $500 to $200, marking a rare Wall Street pullback on the semiconductor giant. In tandem, Morgan Stanley removed Nvidia from its top picks list as analysts reassessed the company's outlook.[2][3][4][5]

In a research note titled "'Icarus' Rise and Fall; Company Will be Fine," Baird analyst Tristan Gerra warned that 2027 data-center forecasts face delays driven by supply constraints, softer demand, and diminished visibility. Gerra projected that hyperscaler artificial intelligence capital expenditure growth could slow to 40% or less by 2027, with 10% to 30% of channel orders potentially facing preemptive cuts, even though current demand for Nvidia's H300 processor remains strong.[3][4]

The Wall Street revisions also reflect mounting unease around executive leadership. Baird pointed to uncertainty regarding Jensen Huang's tenure as chief executive into 2027, while reports from Reuters and Crypto Briefing indicated that sentiment across firms soured further as a controversy involving an affair deepened alongside concerns regarding company leadership and business ties to China.[1][4][5][7]

Key facts

  • Baird downgraded Nvidia to Neutral from Outperform and reduced its price target from $500 to $200.
  • Morgan Stanley dropped Nvidia from its top picks list.
  • Baird analyst Tristan Gerra warned hyperscaler AI spending growth could drop to 40% or lower in 2027 and predicted 10% to 30% of channel orders could see preemptive cuts.
  • Baird reported that demand for Nvidia's H300 chips remains strong despite 2027 data-center forecast delays.
  • Baird flagged uncertainty surrounding CEO Jensen Huang's tenure into 2027.
  • Reuters and Crypto Briefing reported that analyst sentiment worsened over a deepening controversy involving an affair and leadership questions surrounding Huang.

Sources · 6 sources

  1. CN

    CNBC@CNBCPost on X ·

    Baird downgrades Nvidia on CEO Huang worries, AI uncertainty https://t.co/b9ui3SNEWj

    Open source
  2. QU

    Quartz@qzPost on X ·

    Nvidia stock got a rare Wall Street downgrade over Jensen Huang CEO concerns: Baird cut its price target on Nvidia to $200 from $500 as Morgan Stanley dropped the chipmaker as a top pick dlvr.​it/TWHf4M https://t.co/WRZpLtsmOZ

    Open source
  3. WS

    Wall St Engine@wallstenginePost on X ·

    Baird downgraded Nvidia $NVDA to Neutral and cutting its PT to $200 from $500., citing a potential slowdown and a lack of visibility, in a note titled "'Icarus' Rise and Fall; Company Will be Fine"

    Open source
  4. *B

    *Walter Bloomberg@DeItaonePost on X ·

    BAIRD SLASHES NVIDIA PRICE TARGET 60%, WARNS OF AI SLOWDOWN Baird downgraded Nvidia ($NVDA ) to Neutral from Outperform, slashing its price target to $200 from $500. Analyst Tristan Gerra warns that 2027 data-center forecasts face delays amid supply constraints, potentially softer demand and reduced visibility. Hyperscaler AI spending growth could slow to 40% or less in 2027, while 10–30% of channel orders may face preemptive cuts. Despite strong H300 demand, Baird also flags uncertainty surrounding CEO Jensen Huang's tenure into 2027. The warning: Nvidia's AI business remains strong, but growth expectations and leadership risks could weigh heavily on the stock.

    Open source
  5. CB

    Crypto BriefingArticle ·

    Nvidia downgraded by Baird, dropped from Morgan Stanley’s Top Pick list as Jensen Huang scandal deepens Nvidia's leadership crisis and ties to China could undermine investor confidence, impacting its strategic position in the AI sector. The post Nvidia downgraded by Baird, dropped from Morgan Stanley’s Top Pick list as Jensen Huang scandal deepens appeared first on Crypto Briefing .

    Open source
  6. CB

    Crypto BriefingArticle ·

    Baird cuts Nvidia price target to $200, cites AI slowdown concerns Nvidia's growth outlook faces uncertainty, potentially impacting investor confidence and market dynamics amid AI and supply chain challenges. The post Baird cuts Nvidia price target to $200, cites AI slowdown concerns appeared first on Crypto Briefing .

    Open source
  7. RE

    Reuters@ReutersPost on X ·

    Baird, Morgan Stanley sour on Nvidia as CEO affair controversy deepens https://t.co/D9QQdU5ir7

    Open source