Baird cuts Nvidia to neutral on CEO controversy and AI spending doubts

Baird downgraded Nvidia to neutral from outperform on Wednesday, slashing its price target to $200 from $500, citing CEO Jensen Huang's personal controversy and AI spending uncertainty. The new target implies an 18% gain from Tuesday's close. The downgrade follows Huang's admission of an extramarital affair with a woman U.S. intelligence officials suspect of being a Chinese spy. Baird analyst Tristan Gerra predicts a new ban on H200 exports to China, a potential $5 billion write-down from Asian warehouse inventories, and possible DOJ action against partner Megaspeed. Gerra also flagged slowing AI infrastructure demand, estimating hyperscaler capex growth of just 40% in 2027. Nvidia shares are down 30% from October 2026 highs, though Gerra expects the stock to trade sideways until the situation clarifies.