Bernstein cut Nvidia from Outperform to Market Perform, marking the chipmaker’s second rating downgrade of the day. According to Sina Finance, analyst Stacy Rasgon wrote in a client note late Wednesday, “Our instinct is that we may not yet fully understand how deep this goes. We’ll leave it there and would rather step back to the sidelines for now.”
Reports had previously said Nvidia’s board was preparing to remove CEO Jensen Huang, who acknowledged having an extramarital affair. Bernstein cut its price target from $400 to $200, and Nvidia shares fell 8% to $160 in Wednesday’s after-hours trading. Baird had earlier downgraded the stock to Neutral.