Nvidia Stock Downgraded After CEO Huang's China Spy Controversy

Nvidia stock rallied Wednesday after two days of losses following news of CEO Jensen Huang's affair with a suspected Chinese spy, though analysts are beginning to adjust their outlooks on the company. Baird issued a rare downgrade of Nvidia to Neutral from Buy, citing uncertainty from the controversy and potential U.S. government actions. The firm cut its price target from $500 to $200, and analyst Tristan Gerra estimated possible export controls and a $5 billion write-down related to the "Southeast Asia data center loophole." Morgan Stanley removed Nvidia from its top picks list while maintaining an Overweight rating, and analyst Dan Ives warned Huang's departure could reduce the company's value by 30%. Nvidia shares traded as high as $176.27 on Wednesday.