Key Highlights

  • A brokerage downgraded Nvidia (NASDAQ:NVDA) to Neutral from Outperform on November 11, 2026 and cut its price target to USD 200 from USD 500.
  • The firm cited uncertainty over 2027 Data Center visibility, the risk of slower AI spending and questions over leadership.
  • A second major bank removed Nvidia from its top pick list under a stop-loss rule after a fall of more than 25%, while keeping an Overweight rating and a USD 300 target.
  • The stock still rose 2.87% to USD 173.73 that day, before falling about 8% after hours on reports that the board was preparing to remove the chief executive.

The Downgrade and Its Reasoning

The downgrade marked one of the sharpest single reversals in sell side sentiment toward the world's most valuable chipmaker this year. Before the open on November 11, the brokerage moved Nvidia to Neutral from Outperform and cut its target by 60%, to USD 200 from USD 500. It pointed to three concerns. First, visibility on data center Demand into 2027 has become harder to judge after a volatile period for AI infrastructure stocks. Second, the pace of hyperscaler spending could moderate as customers digest capacity and face higher financing costs, with the Federal Reserve now expected to raise rates in December. Third, Leadership uncertainty after reports about the chief executive's personal conduct adds risk that is difficult to model. The new target sat only modestly above the prior close of USD 168.89, signalling limited upside rather than an outright bearish call.

Why the Top Pick Removal Is Different

The second change was procedural rather than a shift in conviction. A large Investment bank removed Nvidia (NASDAQ:NVDA) from its list of top picks because its internal stop-loss policy is triggered when a selection falls more than 25% after being named, and the stock had been added on October 2. The bank kept its Overweight rating and USD 300 target and said the move did not reflect a change in its view of a strong and durable AI buildout. Investors read the two actions differently. The downgrade suggested that some analysts now see a more balanced risk profile, while the top pick removal reflected mechanics. Together, they show that the stock's slide from its October peak, when it closed near USD 239, has forced a reassessment even among long term supporters.

Market Reaction and What Comes Next

The immediate reaction was muted. Nvidia shares rose 2.87% to USD 173.73 on November 11, snapping a two-day slide as chip stocks rallied about 5.7% on a strong AI cloud Earnings report. The calm did not last. After the close, media reports said the board was preparing to remove chief executive Jensen Huang, and the shares fell about 8% in extended trading. On November 12 the company announced that Huang had resigned as chief executive and director effective immediately, with chief financial officer Colette Kress serving as interim chief executive. The reported allegations behind the board review have not been confirmed by the company. The shares fell about 10% premarket, and further rating changes followed, including a downgrade that removed a price target. The next catalyst is the November 17 earnings report, where the company has guided to Revenue of USD 108.0 billion, plus or minus 2%.

Where Things Stand

Nvidia (NASDAQ:NVDA) was cut to Neutral with a USD 200 target on November 11, 2026, citing 2027 visibility, AI spending risk and leadership, while a second bank removed it from a top pick list but kept a USD 300 target. The shares slid after hours on reports about the board, and on November 12 Jensen Huang resigned as chief executive, leaving the November 17 results as the next catalyst.