Baird Downgrades Nvidia to Neutral From Buy, Cites Unclear 2027 Data-Center Demand
Summary
- Baird said it downgraded Nvidia to neutral from buy.
- Baird said it sharply cut its price target on Nvidia to $200 from $500.
- Baird said it cited data-center demand, supply constraints, U.S. government regulations, uncertainty over the CEO's future and signs of slowing demand as reasons.
Forecast Trend Report by Period
Baird downgraded Nvidia to neutral from buy, citing difficulty in gauging data-center demand in 2027.
On November 11, Tristan Gerra, an analyst at Baird, cut his price target on Nvidia to $200 from $500 in a report.
Gerra said visibility into data-center demand next year remains limited. He cited a combination of supply constraints, U.S. government regulations and uncertainty surrounding the CEO's future.
He also deferred providing a 2027 forecast for Nvidia's data-center business. Gerra said capital-spending growth among hyperscalers, or large data-center operators, could slow to below 40% in 2027, primarily because of supply disruptions. He added that some recent signs of weakening demand are also emerging.
