Baird downgrades Nvidia to Neutral; Morgan Stanley drops it from Top Pick list
In brief
- Baird moved Nvidia from Outperform to Neutral and cut its target from $500 to $200.
- Baird cited 2027 data-center visibility, softening AI demand and Huang's tenure beyond next year.
- Morgan Stanley pulled Nvidia from its Top Pick list but kept Overweight and a $300 target.
- 25 of 26 analysts covering Nvidia still rate it Buy or Strong Buy, per Crypto Briefing.
- Nvidia's third-quarter report is expected on November 17, 2026.
Baird's three concerns
Baird's move is the sharper of the two. The firm cut its target by 60%, and according to Crypto Briefing, it pointed to three issues. First, it has limited visibility into data-center spending for 2027. Second, it flagged the potential for demand to soften after years of heavy AI investment. Third, it cited uncertainty over whether Jensen Huang stays on as CEO beyond next year.
Two of those are about demand. The third is about who's running the company.
Morgan Stanley trims, doesn't downgrade
Morgan Stanley's change is narrower. It's a list decision, not a rating cut. The bank kept an Overweight rating and a $300 price target while removing Nvidia from its Top Pick list, citing the stock's slide of more than 25% since it added the name on October 2, Crypto Briefing reported.
It isn't alone. Several firms have trimmed price targets or pulled Nvidia from their favored lists while keeping positive ratings, according to the report. The broader consensus hasn't flipped, though: of the 26 analysts covering Nvidia, 25 rate it a Buy or Strong Buy.
Where the stock sits
Nvidia shares closed at $168.9 on November 10, leaving the stock on track for its largest weekly decline since March 2025, according to Crypto Briefing. The company has shed more than $427 billion in market value over recent sessions, and the report put its valuation at 11.4 times forward earnings.
The next test comes quickly.
Nvidia's third-quarter report is expected on November 17, 2026, which will give investors (and the analysts who've just reshuffled their lists) fresh numbers on the data-center demand Baird says it can't see clearly for 2027.
Frequently asked questions
Why did Baird downgrade Nvidia to Neutral?
According to Crypto Briefing, Baird cited three reasons: limited visibility into data-center spending for 2027, the potential for demand to soften after years of heavy AI investment, and uncertainty over whether Jensen Huang stays on as CEO beyond next year. It also cut its price target from $500 to $200.
Did Morgan Stanley downgrade Nvidia?
No. Morgan Stanley removed Nvidia from its Top Pick list but kept an Overweight rating and a $300 price target, Crypto Briefing reported. The bank cited the stock's slide of more than 25% since it added Nvidia to the list on October 2.
