Nvidia shares are attempting to recover after facing fresh pressure from Wall Street, with Baird downgrading the chipmaker and Morgan Stanley removing it from its list of top stock picks.
The developments add to investor scrutiny of Nvidia’s valuation, expectations for artificial intelligence spending and the sustainability of its recent stock-market performance.
Baird cuts Nvidia price target by 60%
Baird downgraded Nvidia from Outperform to Neutral and reduced its price target from $500 to $200, a 60% cut.
Baird analyst Tristan Gerra cited limited visibility into Nvidia’s 2027 data-center business, potential moderation in artificial intelligence spending and uncertainty surrounding the company’s leadership.
The brokerage also flagged risks associated with U.S. restrictions on advanced chip exports to China and possible enforcement measures targeting data-center operators in Southeast Asia.
Gerra warned that spending by major cloud-computing companies on AI infrastructure could grow by approximately 40% or slightly less in 2027. Although demand for Nvidia’s latest chips remains strong, supply constraints and early indications of softer demand have complicated longer-term forecasts.
Morgan Stanley removes Nvidia from top picks
Morgan Stanley also removed Nvidia from its list of top stock picks, but the decision did not amount to a downgrade.
READ: BofA removes Nvidia, Micron from top stock list (November 10, 2026)
Analyst Joseph Moore maintained an Overweight rating and a $300 price target. The move followed the firm’s stop-loss policy, which automatically removes a stock from its top-pick list after it falls more than 25% from the date of its selection.
Morgan Stanley had designated Nvidia a top pick on Oct. 2. The shares had fallen more than 25% since then. Moore maintained that the long-term artificial intelligence infrastructure expansion remained strong, while acknowledging that uncertainty surrounding CEO Jensen Huang could affect investor confidence in the near term.
Jensen Huang controversy adds to investor concerns
The analyst decisions come amid growing scrutiny of Huang’s leadership following reports concerning his alleged relationship with a Chinese businesswoman accused of having links to Beijing’s intelligence operations.
The allegations have prompted an investigation by Nvidia’s board and an FBI inquiry, while some U.S. lawmakers have raised national-security concerns and called for greater scrutiny of the company’s China-related business.
Reuters reported that the controversy has intensified questions about Nvidia’s dependence on Huang, whose leadership has been central to the company’s expansion in the AI chip market. The allegations remain subject to investigation.
READ: Nvidia shares plunge as Jensen Huang scandal rattles investors (November 9, 2026)
The company is also facing renewed attention over the movement of advanced Nvidia chips into China through intermediaries, raising questions about the enforcement of U.S. export restrictions.
Nvidia faces a critical earnings test
Despite the recent pressure, Nvidia remains one of Wall Street’s most widely favored technology stocks.
According to Reuters, 59 of the 64 brokerages covering the company maintained Buy or Strong Buy recommendations, with a median price target of $314.
Nvidia is scheduled to report its third-quarter fiscal 2027 results after the market closes on November 17. Investors will be watching revenue guidance, demand for its advanced AI processors, supply constraints and management’s comments on the outlook for 2027.
The competing analyst assessments reflect a broader debate over whether Nvidia can sustain its extraordinary AI-driven growth amid geopolitical restrictions, leadership uncertainty and changing capital-spending expectations among major technology companies.