Baird downgraded Nvidia from outperform to neutral and cut its price target from $500 to $200, implying an 18% upside from Tuesday’s close. The decision comes amid uncertainty about a potential slowdown in AI-related capital expenditure and over whether Jensen Huang will remain as CEO while the board conducts an internal investigation into his admitted extramarital affair. Baird expects a new ban on H200 exports to China, which could result in an estimated $5 billion inventory write-down, as well as tighter export controls on Southeast Asian data-center loopholes. The bank estimates AI hyperscaler capital expenditure may rise by only 40% in 2027. After falling 30% from its October 2026 highs, Nvidia stock could nevertheless remain within a trading range until these concerns are resolved.
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