Baird downgraded Nvidia to Neutral today, slashing its price target from $500 to $200 and publicly calling for Jensen Huang to step down.
The market didn’t buy it: Nvidia closed at $175.81, up 4.10%. The same day, Morgan Stanley reiterated its Overweight rating with a $300 price target, while another firm upgraded the stock to Strong Buy. The analysts are already at each other’s throats.
Last night, I said I’d stay on the sidelines with the investigation hanging over the stock. Today’s rally was sparked by CoreWeave, and the sector-wide tide drowned out the downgrade. The scandal isn’t behind us, so I’m still not chasing it. I’ll be watching the close: holding above the $172.80 opening price would mean the downgrade has been absorbed. A drop below it would just mean the bad news is being priced in later. The real verdict will have to wait until the earnings report on November 17.
The market didn’t buy it: Nvidia closed at $175.81, up 4.10%. The same day, Morgan Stanley reiterated its Overweight rating with a $300 price target, while another firm upgraded the stock to Strong Buy. The analysts are already at each other’s throats.
Last night, I said I’d stay on the sidelines with the investigation hanging over the stock. Today’s rally was sparked by CoreWeave, and the sector-wide tide drowned out the downgrade. The scandal isn’t behind us, so I’m still not chasing it. I’ll be watching the close: holding above the $172.80 opening price would mean the downgrade has been absorbed. A drop below it would just mean the bad news is being priced in later. The real verdict will have to wait until the earnings report on November 17.