Why Did Aletheia Downgrade Nvidia (NVDA)? Farooq Tue, November 10, 2026 at 5:23 PM EST 4 min read NVDA -5.19% ^IXIC -0.74% ^GSPC -0.38% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the 10 Stocks Analysts Just Downgraded and Nvidia (NASDAQ:NVDA) ranked 10th on this list.
Wall Street has had a rough start to November. The Nasdaq Composite fell 5.52% on November 5, its steepest one-day drop in 19 months, and slid into a correction, more than 10% below its October 6 record close. The semiconductor index lost more than 12% that day, and about $3 trillion in value was erased from S&P 500 companies.
Fear of tighter rules on AI drove much of the rout. Democratic wins in the November elections raised concerns that stricter regulation could slow the buildout of AI infrastructure, and the stocks tied to data centers took the hardest hit. Investors who had been paying up for AI growth suddenly had to ask how much of that growth could be stopped by politics.
Not everyone saw the drop as a verdict on the AI trade. Jed Ellerbroek of Argent Capital Management described the selling as a capitulation phase for data center beneficiaries, meaning forced selling that often marks a low. A Wall Street research shop, Yardeni, argued that political pushback on data centers amounts to "speed bumps, not roadblocks, even though Wall Street seems to be pricing in the latter."
The economy did not offer a cushion. Payrolls rose by 165,000 in October, far above the 65,000 to 70,000 economists expected, and the unemployment rate stood at 4.1%. That kept a December rate hike in play, and Cleveland Fed President Beth Hammack and Richmond Fed President Thomas Barkin have both hinted that higher rates could be on the table.
Our ranking of oversold AI stocks where Wall Street analysts see 50%+ upside looks at the corner of the market that sold off the most.
On Monday, strategists led by Beata Manthey cut US stocks and the global technology sector to neutral and raised European stocks outside the UK to overweight. Manthey warned that positioning in stocks "could reset lower into net-short territory." The S&P 500 had its biggest weekly loss since April 2025, which helps explain why many investors are looking for cheaper places to put money. You might also be interested in our list of affordable stocks Wall Street analysts like.
Stocks bounced back on Monday. By midday, the Dow was up about 2%, the S&P 500 about 2.3%, and the Nasdaq about 2.6%. Inflation data due later this week is the next big test for the market and for the Federal Reserve's rate path, and analysts have kept reshuffling their ratings as the numbers move.
Nvidia made it to our list because it has an average upside potential of 88%. However, Stefan Chang, an analyst at Aletheia Capital, cut Nvidia to Hold from Buy on November 9 and withdrew his $340 price target. His worry is not demand for the chips but the money Nvidia has promised to the companies buying them. Chang said an AI Computing Partner program has pushed the company's financial commitments up more than tenfold, to $165 billion in the second quarter of fiscal 2027, and he called the funding picture for smaller AI cloud builders opaque. He also pointed to a guarantee the company gave on an Ohio data center.
Nvidia designs the chips that run most large AI data centers, and the business behind the worry is still growing fast. Revenue came in at $96.2 billion last quarter, up 106% from a year earlier, and Chief Executive Officer Jensen Huang said the AI infrastructure buildout is "at full steam." The company guided to $108.0 billion for the current quarter without counting any Data Center compute revenue from China.
Fresh numbers arrive when Nvidia reports again next week. Our look at how Nvidia is using its AI growth to chase autonomous driving covers one bet beyond the data center.
While we acknowledge the risk and potential of SAP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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