Lates News

Wall Street's stance on Nvidia is starting to soften. An investigation into CEO Jensen Huang is casting doubt on the market's outlook for the AI chipmaker. Days after Huang disclosed the situation in an internal memo to employees, Baird downgraded Nvidia to Neutral, and Morgan Stanley removed it from its list of top picks. Baird analyst Tristan Gerra said the firm will take a more cautious stance until uncertainty surrounding potential U.S. government actions and upcoming congressional hearings is resolved, the U.S. government investigation reaches a conclusion, near-term adjustments in risk channels and the potential impact of related costs on revenue are quantified, and Huang's employment prospects become clear. Gerra also slashed his price target on Nvidia to $200 from $500. The stock closed at $168.89 on Tuesday, down about 10% over the past two trading sessions. Although Morgan Stanley remains bullish on Nvidia, analyst Joseph Moore said near-term uncertainty will persist because Huang's leadership is critical to the company's strategic direction.