Baird Downgrades Nvidia as Huang Probe Widens: Price Target & Earnings
Baird cut Nvidia to neutral and slashed its price target to $200, while Morgan Stanley dropped the chipmaker from its Top Pick list amid the Huang probe.
Image: Wikimedia Commons / Joseph Zadeh
NEW YORK, November 11, 2026 — Baird downgraded Nvidia to neutral on Wednesday and cut its price target on the chipmaker to $200 from $500, while Morgan Stanley removed the stock from its Top Pick list, as Wall Street unease over Jensen Huang's future deepened. The two moves landed on the same day Nvidia shares rebounded about 4% in trading, after closing at $168.89 on Tuesday.
Huang admitted to an extramarital affair in a letter to employees on Sunday. The reported affair, with a Chinese businesswoman alleged to be a spy for Beijing, has set off a board investigation, an FBI inquiry and calls in Washington for Huang to step down. The stock has fallen nearly 30% from its October peak.
Key Takeaways
- Baird cut Nvidia to neutral and more than halved its price target, to $200 from $500, citing weak visibility on 2027 data-center spending.
- Morgan Stanley removed Nvidia from its Top Pick list but kept an overweight rating and a $300 target.
- Nvidia shares have fallen nearly 30% since the October peak and closed at $168.89 on Tuesday.
- Nvidia reports third-quarter results on November 16, with a board investigation and an FBI inquiry still under way.
Why Baird Downgraded Nvidia and Cut Its Price Target to $200
Baird analyst Tristan Gerra moved Nvidia to neutral from outperform, a rare downgrade for Wall Street's AI bellwether. Gerra said he was holding off on publishing 2027 data-center forecasts because visibility had deteriorated sharply, with supply issues and slower spending by large cloud customers possible. He also pointed to uncertainty over Huang's tenure beyond next year, an upcoming congressional hearing and US government investigations whose outcome is not yet known.
Gerra said he would stay cautious until the hearing and the investigations ran their course and the revenue impact was quantified. The $200 target sits below the $300 target Morgan Stanley kept, and well below the levels Nvidia traded at through most of October.
Why Morgan Stanley Removed Nvidia From Its Top Pick List
Morgan Stanley took a different step from Baird. Analyst Joseph Moore removed Nvidia from the bank's Top Pick list for semiconductors while keeping an overweight rating and a $300 price target. Moore said Huang's leadership was crucial to the company's direction.
The removal followed the bank's stop-loss policy for Top Picks: Nvidia has dropped more than 25% since it was given the designation last month. The bank had only reinstated Nvidia as a Top Pick last month, which underlines how fast sentiment has turned. The move is not a sell call, but it removes a strong Wall Street endorsement while investors are already rattled.
| Measure | Detail |
|---|---|
| Baird rating | Neutral (was outperform) |
| Baird price target | $200, cut from $500 |
| Morgan Stanley rating | Overweight, $300 target |
| Morgan Stanley Top Pick | Removed Nov 11 |
| Close, November 10 | $168.89, lowest since March |
| Fall from October peak | Nearly 30% |
| Next earnings | November 16 |
What the Nvidia Downgrade Means for Investors Before November 16 Earnings
The downgrade arrives five days before Nvidia reports third-quarter results on November 16, the next test of the AI spending story. Tech analyst Dan Ives put the chance of Huang being removed as chief executive at 15%, a reminder that the board investigation and the FBI inquiry still hang over the company.
For now, the market has not given up: it rallied with the wider AI trade on Wednesday, helped by a strong earnings report from CoreWeave, and downgrades of Nvidia remain rare. Microsoft has already overtaken Nvidia as the world's second-most-valuable company. Whether Nvidia holds its ground will turn on what it says about data-center demand on November 16 — and on its board's decision about Huang.
Frequently Asked Questions
Why did Baird downgrade Nvidia stock?
Baird cut Nvidia to neutral and halved its target to $200, citing poor visibility on 2027 data-center spending, possible demand softening and uncertainty over Jensen Huang's future as chief executive.
Did Morgan Stanley downgrade Nvidia as well?
No. Morgan Stanley kept an overweight rating and a $300 target, but removed Nvidia from its Top Pick list after the stock fell more than 25% in a month.
How much has Nvidia stock fallen from its peak?
Nvidia has fallen nearly 30% from its October peak and closed at $168.89 on Tuesday, its lowest since March, before rebounding about 4% in Wednesday trading.
When is Nvidia's next earnings report?
Nvidia reports third-quarter results on November 16, 2026. It is the next major test for the AI spending story.
