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.
\n\n• The brokerage downgraded the chip giant to ”Neutral” from ”Buy” and cut its price target to $200 from $500
\n\n• Nvidia’s shares closed at $168.9 on Tuesday and are on track for their biggest weekly drop since March 2025, with uncertainty over top leadership weighing on the stock
\n\n• The brokerage added that Nvidia shares are likely to remain range-bound in the near term given the investigation into CEO Jensen Huang’s relationship with a Chinese businesswoman that is allegedly part of a spying operation
\n\n• Demand from Southeast Asian data-center operators and China is crucial for the chip company, and any pre-emptive or US government restrictions on exports could weigh on revenues, Baird said
\n\n• AI hyperscaler capex growth could slow to about 40% year-on-year in 2027, bogged down by supply constraints and early signs of demand softening, it added
\n\n• Demand for Nvidia’s H300 chips outpaces supply; however, due to timing risks, 10-30% of pre-emptive orders could be exposed…
Original source: https://www.cnbctv18.com/technology/
