Nvidia shares get 60% target cut! What should Indian stock investors know
Nvidia shares: The downgrade comes at a time when Nvidia shares have plunged 17 per cent in the past week, taking their monthly decline to 25 per cent.
- Nov 11, 2026,
- Updated Nov 11, 2026 7:26 PM IST
NVIDIA, which is spearheading the global artificial intelligence (AI) race and was the first publicly listed company to hit the $5 trillion mark in October 2025, has reportedly received a 60 per cent target cut, with Baird downgrading the stock to 'Neutral' from 'Outperform' on Wednesday. AI hyperscaler capex could slow to 40 per cent growth or slightly less in 2027, it warned, as it cut its target on Nvidia to $200 from $500 earlier. The revised target still suggested a potential 18.48 per cent upside over the prevailing price of $168.80 per share.
The downgrade comes at a time when Nvidia shares have plunged 17 per cent in the past week, taking their monthly decline to 25 per cent. The fall has coincided with controversy after Chief Executive Officer Jensen Huang, on November 8, admitted to being unfaithful in his marriage, effectively confirming a series of reports linking him romantically with a woman identified as a suspected Chinese spy, whose company bought chips from Nvidia.
In a November 9 note, Shriram Finance noted that chip or material providers to data centres, including Nvidia, have been broadly repriced amid discussions around the moratorium narrative emerging from Texas. This follows the US election outcome, which saw a Democratic sweep and raised questions over the AI buildout.
Shriram Finance said markets used the Texas results as a signal about the regulatory outlook for US data-centre construction as a whole. This points to the 2028 channel, with a multi-year physical buildout being repriced for the risk of a less supportive regime after 2028.
Nomura feels a federal AI data-centre moratorium is unlikely, but a "temporary pause" at the state level is possible. It said mainstream Democrats are not opposed to AI itself.
In Texas and Georgia, candidates who campaigned on a "temporary pause" won, while in Ohio, candidates from both parties backed conditional approval. No governor-elect in major data-centre states has pledged a permanent ban; permanent bans exist only in some local ballot measures, Nomura said.
Nvidia's downgrade comes as 2027 data-centre forecasts are being delayed amid a recent lack of visibility. This could accelerate the reverse AI trade, which has benefitted India of late with foreign inflows touching Rs 60,698 crore in November so far.
Supply issues are largely behind a potential downside, alongside softening demand, Braid reportedly said.
"While H300 lead times remain stretched and demand well exceeds supply, timing risks exist around potential pre-emptive order cuts from risk channels, with exposure estimated at 10-30 per cent. Finally, uncertainties related to CEO tenure into 2027 also support our trading range views on the stock near term. Neutral-rated," Baird reportedly said.
NVIDIA, which is spearheading the global artificial intelligence (AI) race and was the first publicly listed company to hit the $5 trillion mark in October 2025, has reportedly received a 60 per cent target cut, with Baird downgrading the stock to 'Neutral' from 'Outperform' on Wednesday. AI hyperscaler capex could slow to 40 per cent growth or slightly less in 2027, it warned, as it cut its target on Nvidia to $200 from $500 earlier. The revised target still suggested a potential 18.48 per cent upside over the prevailing price of $168.80 per share.
The downgrade comes at a time when Nvidia shares have plunged 17 per cent in the past week, taking their monthly decline to 25 per cent. The fall has coincided with controversy after Chief Executive Officer Jensen Huang, on November 8, admitted to being unfaithful in his marriage, effectively confirming a series of reports linking him romantically with a woman identified as a suspected Chinese spy, whose company bought chips from Nvidia.
In a November 9 note, Shriram Finance noted that chip or material providers to data centres, including Nvidia, have been broadly repriced amid discussions around the moratorium narrative emerging from Texas. This follows the US election outcome, which saw a Democratic sweep and raised questions over the AI buildout.
Shriram Finance said markets used the Texas results as a signal about the regulatory outlook for US data-centre construction as a whole. This points to the 2028 channel, with a multi-year physical buildout being repriced for the risk of a less supportive regime after 2028.
Nomura feels a federal AI data-centre moratorium is unlikely, but a "temporary pause" at the state level is possible. It said mainstream Democrats are not opposed to AI itself.
In Texas and Georgia, candidates who campaigned on a "temporary pause" won, while in Ohio, candidates from both parties backed conditional approval. No governor-elect in major data-centre states has pledged a permanent ban; permanent bans exist only in some local ballot measures, Nomura said.
Nvidia's downgrade comes as 2027 data-centre forecasts are being delayed amid a recent lack of visibility. This could accelerate the reverse AI trade, which has benefitted India of late with foreign inflows touching Rs 60,698 crore in November so far.
Supply issues are largely behind a potential downside, alongside softening demand, Braid reportedly said.
"While H300 lead times remain stretched and demand well exceeds supply, timing risks exist around potential pre-emptive order cuts from risk channels, with exposure estimated at 10-30 per cent. Finally, uncertainties related to CEO tenure into 2027 also support our trading range views on the stock near term. Neutral-rated," Baird reportedly said.