The Espionage Scandal Surrounding Nvidia

Nvidia’s Price Target Slashed by Investment Bank

The American investment bank Baird has cut its price target for chip designer Nvidia from $500 to $200. At the same time, the rating has been downgraded from "buy" to "hold," reports CNBC.

Nvidia’s stock closed at $169 on Tuesday. In June, it was trading above $230.

The downgrade is attributed to increased uncertainty regarding the future of the data center sector. Baird anticipates that investment growth will slow down by 2027.

The investment bank notes that the suspected espionage case involving Nvidia CEO Jensen Huang is also contributing to uncertainty surrounding the company.

“The Nvidia Affair – A Messy Brew of Power and Betrayal”

Nvidia CEO Jensen Huang’s infidelity with a suspected Chinese spy, Alice Huang, has sparked reactions. Aftonbladet’s Anna Andersson writes that she finds it inexplicably amusing that this AI luminary appears to have “fallen for something as incredibly analog and traditional as a honey trap.”

“In the real world, Jensen Huang—just like anyone else—sought validation from another flesh-and-blood human being, rather than just from a sycophantic AI agent,” she writes. SvD’s Jóanna Gorecka describes the story as a “big, soggy mess of power, betrayal, and the sneezes of the flesh.”

“As less and less of our private lives remains in the shadows, what is still kept from the light becomes all the more charged,” she writes.