Baird Downgrades Nvidia to Neutral and Slashes Price Target by 60% to $200

Baird downgraded Nvidia Corporation from Outperform to Neutral on Wednesday, cutting its 12-month price target by 60% from $500 to $200. Following Tuesday's close at $168.80, the new target implies an 18.48% upside. Analyst Tristan Gerra cited supply constraints, potential 2027 data center turmoil, and decelerating hyperscaler AI spending growth to 40% or lower. Baird also warned of governance overhang from investigations into CEO Jensen Huang, potential $5 billion inventory write-downs if H200 exports to China are banned, and risks to Southeast Asian channels. Wall Street maintains a Strong Buy consensus on Nvidia with an average $317.83 target.