Nvidia Rebounds 3.9% as Baird Slashes Target to $200 and Korea AI Pact Takes Shape

Nvidia shares climbed 3.9% on Tuesday, a day after the stock shed 5.0% amid fresh worries about the broader AI sector, a hotter-than-expected US inflation reading and mounting expectations of a rate hike that weighed on technology names across the board. The rebound came even as Baird cut its rating on the chipmaker from "Outperform" to "Neutral" and slashed its price target from $500 to $200.

Baird pointed to limited visibility on data-center demand in 2027 and supply bottlenecks. It also flagged uncertainty over US government policy and the tenure of CEO Jensen Huang. Citigroup analyst Atif Malik, meanwhile, trimmed his target from $315 to $285 a day earlier while keeping his buy recommendation, citing higher memory costs and anticipated pressure on gross margins.

A Boardroom Inquiry and a Shareholder Suit

The corporate-risk picture has grown more complicated. Independent members of Nvidia's board on Monday tasked Joon H. Kim and Wachtell, Lipton, Rosen & Katz with an investigation into reports that Huang was the target of a foreign intelligence operation. The board said it had no reason to believe that national security or Nvidia secrets had been compromised.

According to AP, a proposed shareholder class action accuses Nvidia and Huang of misleading information. The claims concern a reported relationship between Huang and a woman alleged to have been a Chinese intelligence agent. The suit seeks damages in an unspecified amount.

Aletheia Capital added to the cautious tone, downgrading Nvidia from "Buy" to "Hold" on Monday and withdrawing its $340 price target. The research house cited risks tied to the AI Computing Partner program and possible operational challenges.

Korea Pact and a Commvault Tie-Up

On the business side, Nvidia, Rebellions and SK Telecom unveiled a collaboration on sovereign AI infrastructure in Korea. Rebellions plans to connect its R200 processors to Nvidia's NVLink Fusion and deploy the Nvidia MGX rack architecture. SK Telecom intends to use the systems in its AI data center, with the R200 systems expected to be operational in 2028.

Commvault also announced a partnership with Nvidia, aimed at preparing enterprise data in a controlled way for AI applications and agents. A reference design is slated for an early release in December 2026, with general availability to follow in 2027.

Separately, CoreWeave raised its 2026 revenue forecast to between $13 billion and $13.3 billion, pointing to demand for AI computing capacity.

November 17 as the Decisive Test

Nvidia has scheduled its quarterly results for November 17, 2026. The key question for investors will be whether management can describe demand and order fulfillment convincingly. Strong demand commentary could shore up operational confidence, while a credible account of how the backlog converts into revenue would carry more weight than any single remark about the AI industry. Should confidence in backlog execution falter, the operational risks cited by Aletheia would loom larger, with added pressure if the investigation or the shareholder suit stirs fresh uncertainty.