Investment firm Baird has downgraded Nvidia stock from Outperform to Neutral. The company also lowered its price target for the chipmaker to $200, citing concerns over a potential slowdown in AI-related spending and ongoing supply chain difficulties.
The downgrade follows a period of strong financial results for Nvidia. In fiscal Q2 2027, the company reported a 106% year-over-year revenue increase, with revenue from its Data Center segment growing by 117%.
Market participants are now focusing on the upcoming earnings report scheduled for November 17. Investors are looking for updates regarding supply chain stability and shifts in AI infrastructure investments from major clients like Microsoft, Meta, and Amazon.
Additional pressure on the stock stems from geopolitical factors, specifically U.S. export controls on Nvidia products. These regulatory constraints remain a significant variable for the company's future market performance and pricing.
