Baird Downgrades Nvidia to Neutral, Cuts Price Target to $200 on Murky 2027 Data-Center Demand
JOON HYOUNG LEE
Summary
- Baird said it downgraded Nvidia to neutral from buy and sharply cut its price target to $200 from $500.
- It said visibility into next year's data-center demand is limited, with supply constraints, U.S. government regulations and uncertainty over the CEO's future all weighing on the outlook.
- It said hyperscalers' AI capital-expenditure growth could slow to below 40% in 2027, citing supply disruptions and signs of weakening demand as the main reasons.
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Baird downgraded Nvidia to neutral from buy, citing difficulty gauging data-center demand in 2027.
In a Nov. 11 report, Baird analyst Tristan Gerra slashed his price target on Nvidia to $200 from $500.
Gerra said visibility into next year's data-center demand remains limited. Supply constraints, U.S. government regulations and uncertainty surrounding the chief executive's future are all weighing on the outlook.
He also deferred providing a 2027 forecast for Nvidia's data-center business. Gerra said hyperscalers' AI capital-expenditure growth could slow to below 40% in 2027, with supply disruptions as the main reason. He added that there are also recent signs of weakening demand.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul