Bernstein Cuts Nvidia Rating to Market Perform, Halves Target to $200

Bernstein lowered Nvidia's rating to Market Perform from Outperform on Nov. 12 and cut its price target to $200 from $400. The firm pointed to uncertainty about the company's management outlook and potential business risks.

Analyst Stacy A. Rasgon said the downgrade did not reflect a deterioration in Nvidia's fundamentals. Bernstein maintained that data-center growth prospects were strong and the valuation was attractive, while warning that negative developments could continue.

Bernstein's risk assessment included uncertainty over succession if Jensen Huang leaves, a possible government investigation and changes to supply-chain investments, backstop commitments and guarantees.