NVIDIA Rises 4% Despite Baird Downgrade and Huang Uncertainty; AMD Climbs 5%, Broadcom Gains 4%
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A Wall Street downgrade that raises questions about leadership at NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) arrives as AI chip stocks rebound. NVIDIA stock is at $175.23, up 4% in morning trading. That puts the chipmaker on track for its biggest one-day gain since late August, after a two-day selloff left it near its 52-week low.
Baird cut NVIDIA to Neutral from Outperform and lowered its price target to $200 from $500. Morgan Stanley and Bank of America have also cooled on the stock, but buyers are stepping in after a strong quarter from CoreWeave (NASDAQ:CRWV) revived the AI trade.
The rally is broad across AI chipmakers. Advanced Micro Devices (NASDAQ:AMD) is posting a bigger gain than NVIDIA. Broadcom (NASDAQ:AVGO) is climbing as well.
Why Baird Downgraded NVIDIA Despite Strong Demand
Baird said visibility has deteriorated enough that it’s holding off on publishing 2027 data center forecasts for NVIDIA. The firm sees supply constraints as the main risk to the company’s growth, with softer demand a possible contributor. Slower growth in AI spending by large cloud companies in 2027 is also part of Baird’s outlook.
Leadership weighed on the call as well. Baird cited uncertainty over whether NVIDIA CEO Jensen Huang stays on into 2027 after reports about his personal conduct and a board investigation. Even so, the firm noted that demand for NVIDIA chips still exceeds supply.
Under its stop-loss policy for top picks, Morgan Stanley analyst Joseph Moore removed NVIDIA as the firm’s top semiconductor pick after the stock’s drop of more than 25% since October. Morgan Stanley kept its Overweight rating and its $300 price target on NVIDIA. Bank of America took NVIDIA off its U.S. 1 List on November 10.
CoreWeave Reignites the AI Trade for AMD and Broadcom
CoreWeave’s beat-and-raise quarter boosted the AI trade before the open on November 11, lifting chip, memory and data center names along with NASDAQ 100 futures. Goldman Sachs analyst James Schneider called AI stocks “clearly in oversold territory” and named NVIDIA, Broadcom and AMD as top picks.
James Schneider said NVIDIA trades at 12x and Broadcom at 13x a no-growth 2028 baseline that he considers unlikely. He called AMD “very attractive” for growth, though less compelling on valuation. Schneider warned that catalysts for a sustained rally in chip stocks like NVIDIA may be limited before year-end.
AMD stock is at $541.28, up 5%, beating NVIDIA. Broadcom stock is at $345.83, up 4%, a slightly firmer advance than NVIDIA’s. Both chipmakers are rising without a fresh downgrade hanging over them.
How NVIDIA, AMD and Broadcom Sell Into the AI Buildout
NVIDIA sells a full platform: GPUs, networking, systems and the CUDA software ecosystem that ties them together. On the company’s August 26 earnings call, Huang said, “NVIDIA is a platform, an entire AI factory platform that spans the entire AI life cycle, that you can use in any cloud.”
AMD pairs its Instinct GPUs with EPYC server CPUs in Helios rack-scale systems and backs them with its open ROCm software, while the chipmaker also runs PC, gaming and embedded businesses that give AMD a broader mix than NVIDIA.
Broadcom co-designs custom accelerators with AI labs such as Anthropic and OpenAI and sells the Ethernet networking that links large AI clusters, while VMware-based infrastructure software adds an enterprise revenue stream to Broadcom that the GPU makers lack. Hock Tan argued on the company’s September 2 call that a chip co-developed for specific large language model workloads “will outperform any GPU.”
What NVIDIA’s November 17 Report Has to Prove
NVIDIA will report its Q3 FY2027 results after the close on November 17. Shareholders want reassurance the AI investment cycle is durable. The next test for NVIDIA is whether its results back up the $108 billion revenue outlook the company issued in August. The rebound also comes as Chicago Fed President Austan Goolsbee called the latest inflation report “borderline disturbing” while the Fed weighs more rate hikes.
Bulls can point to Baird’s own finding that demand for NVIDIA chips exceeds supply, along with Schneider’s low-multiple case. The same expansion thesis supports the power, cooling, and networking suppliers we profiled in a free report on AI infrastructure names beyond the chipmakers. On the other side sit an unresolved leadership question, slower expected cloud spending growth and a Fed leaning toward tighter policy. A cautious approach may be warranted until the leadership question at NVIDIA settles.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk. His work has appeared in 24/7 Wall St., The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, MarketScreener, TalkMarkets, Finmasters, and others. With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
