Baird downgraded Nvidia to Neutral and more than halved its price target to $200 from $500, citing a lack of visibility into 2027 data center demand tied to supply constraints and uncertainty over U.S. government action and the CEO's tenure. Analyst Tristan Gerra delayed his 2027 data center forecasts and wrote that hyperscaler AI capital spending could slow to 40% growth or slightly less in 2027. He said a new ban on H200 exports to China could translate into a $5 billion write-down, and noted the board has opened an independent investigation after CEO Jensen Huang told staff he had been "unfaithful" to his wife.
AI stocks rallied Wednesday, with CoreWeave jumping more than 20% in morning trades after solid results and Nvidia rebounding after a difficult week linked to its CEO scandal. Oracle rose more than 10%, and its CFO Hilary Maxson told Investor's Business Daily that demand remains strong and customers are contracting capacity years in advance. Gil Luria of D.A. Davidson said Anthropic's roadshow is going well and propping up the AI trade.
Nvidia shares rose roughly 5% on Wednesday for the first time in three sessions, as chip stocks surged after CoreWeave raised its full-year revenue outlook to $13 billion to $13.3 billion from a prior $12 billion to $13 billion. Nvidia is still down about 14% in November and has lost about $700 billion in market value. Baird downgraded the stock to Neutral, with analyst Tristan Gerra citing uncertainty over U.S. government action, government investigations and CEO tenure.
Nvidia fell 5.5% on Tuesday after a 4.3% decline the previous day, following news that the board opened an investigation into CEO Jensen Huang's relationship with an alleged Chinese spy. Wells Fargo analyst Aaron Rakers reiterated a Buy rating and lowered his price target to $300 from $315, saying he sees little or no risk to demand or fundamentals at this point. Nvidia reports Q3 FY27 earnings on November 17.
Nvidia trades at about 15x forward earnings after a 9% drop on Nov. 5, half its three-year average. Consensus estimates put revenue at $1.1 trillion for the year ending January 2030, about five times the $215.9 billion Nvidia sold in the year ended January 2026, with only 8 analysts forecasting that far out. Bob Elliott of Unlimited Funds told CNBC's Closing Bell Overtime that it "doesn't take much in terms of stalling of the AI trade" to disappoint against those expectations.
Arun Sundaram of CFRA discussed the firm's downgrade of Nvidia (NVDA), saying tech may be oversold as AI demand remains strong despite growing policy, financing and data center risks. He pointed to upcoming catalysts including Nvidia's earnings and a potential Anthropic IPO.
Nvidia CEO Jensen Huang told employees in a memo on Sunday that he had an affair with a former Megaspeed International executive whom U.S. officials suspect of links to foreign intelligence activity, and the board has deployed an independent committee to probe the matter. Nvidia stock fell 8.8% for the week, its biggest weekly loss since April 2025, and its valuation slid below $5 trillion. President Donald Trump backed Huang, calling him a "fine person" and saying he should continue as CEO.
Nvidia shares are roughly 22% below their all-time high and essentially flat so far in 2026. In its fiscal second quarter, which ended July 26, Nvidia generated $96.2 billion in revenue, up 106% from a year earlier, with data-center revenue of $89 billion, an increase of 117%. Management guided to about $108 billion in third-quarter revenue, roughly 12% more than the second quarter, says the Vera Rubin platform is in full production, and reports fiscal third-quarter earnings on Nov. 17.
Nvidia fell 9.26%, shedding $18.53 per share in a single session and wiping out its gains for 2026. The company's market capitalization stands at $4.82 trillion, and the stock trades at 22.23x forward earnings versus the sector's 27.45x median, with a 1.59x PEG against a 1.00x median and an annual dividend of $1.00 per share yielding 0.48%. For fiscal second-quarter 2027, Nvidia reported revenue of $96.22 billion, up 106% and above the $92.37 billion consensus, GAAP earnings of $2.46 per share, and guidance of $108 billion in revenue for the next quarter.
Nvidia trades at a forward price-to-earnings multiple of about 13, after a 105.8% rise in fiscal second-quarter revenue and a 117% jump in data-center sales. Analysts see potential upside of 75%, but the valuation depends on continued strong earnings forecasts, and the coming third-quarter report will be watched for revenue above guidance, stable gross margins and improved sales collections. The stock traded at USD 186.64, up 2.78% for the day, within a 52-week range of USD 165.17 to USD 239.27, with a market capitalization of $4.51 trillion and a dividend yield of 0.54%.
Nvidia stock has declined about 24% over the past month, wiping out its year-to-date gains, amid concerns about elevated data-center capital expenditure, reliance on debt to finance AI infrastructure and regulatory shifts after the U.S. midterm elections. The analysts' consensus price target of $326.65 represents about 80% upside from the November 5 closing price of $181.60. Nvidia reported an 85% year-over-year revenue increase in the first quarter of fiscal 2027 and a 106% jump to $96.2 billion in the second quarter, and management expects third-quarter revenue of approximately $108 billion.
Nvidia shares have fallen 13% over the past month, leaving the price at around $202 versus analysts' average price target of $327, which would mean a gain of around 62%, according to a Motley Fool article published on Mitrade. The article points to strong sales growth at Nvidia's customers, including SK Hynix's recently reported third-quarter results, as a sign that AI infrastructure spending continues.
