Baird has downgraded Nvidia Corp. to Neutral from Outperform and cut its price target to $200 from $500. The brokerage pointed to the uncertainty around Chief Executive Officer Jensen Huang and a possible slowdown in artificial intelligence spending by the largest cloud companies.
It is an unusual move on a stock Wall Street remains overwhelmingly bullish on. Only three of the 64 analysts tracking Nvidia rate it hold or underperform, according to LSEG data cited by CNBC.
In a note on Wednesday, Baird analyst Tristan Gerra said he had less visibility into data-centre forecasts for 2027, Investing.com reported. He expects hyperscalers' AI capital spending growth to slow to about 40% or less next year. He also warned that 10% to 30% of channel orders could face pre-emptive cuts, according to HuggingNews, and that supply constraints could delay data-centre growth.
(This is a developing story)
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