Bernstein Just Gave Up on Nvidia, Cutting Its Target in Half to $200

Résumé détaillé

Two brokers landed on the same price target within hours, a board shake-up looms, and the stock sits below its 52-week low. Does a 14x forward multiple mean Wall Street is overreacting, or seeing something earnings haven't shown yet?

NVIDIA (NASDAQ:NVDA) closed Wednesday's regular session at $173.73, up $4.84, or 2.87%. By 7:59 p.m. ET it traded at $158.76, down $14.97, or 8.62%, which put it below its 52-week low of $164.27.

Two things happened between those prices. Reports emerged that NVIDIA's board is reportedly preparing to oust CEO Jensen Huang, which the company has not confirmed. Regardless, with two back-to-back affairs in the past few days, many board members are seeing Huang as a liability.

Then Bernstein downgraded the stock to Market Perform from Outperform and cut its target to $200 from $400, a 50% reduction. The team wrote that it had "had enough."

Meanwhile, the 62 analysts covering NVIDIA still average a Strong Buy rating and a $316.48 target, roughly 82% above the close. That average has not yet absorbed a day with two downgrades and a top-pick removal, so the upside it implies is probably too high.

Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years.

Baird moved first on Wednesday morning, cutting NVIDIA to Neutral from Outperform and lowering its target to $200 from $500. Baird said visibility had deteriorated enough that it is holding off on publishing 2027 data center forecasts. It expects slower AI spending growth from large cloud companies in 2027 and flagged uncertainty over whether Huang stays into 2027, although it noted that demand for NVIDIA chips still exceeds supply.

Bernstein's evening call reached the same $200 figure. The full reasoning has not been made public, so investors have to work with the rating, the target, and the "had enough" line. Two identical targets in one day give the market a new reference point, and $200 now sits beside the consensus average as a number traders will anchor to.

A fundamental downgrade says…

Morgan…

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