Wall Street broker calls shift sentiment on Nvidia, Broadcom and other major stocks

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Broker shifts on major stocks

Highlights

Rothschild & Co Redburn downgraded Broadcom to neutral from buy on limited near-term upside, despite ongoing AI-driven semiconductor demand.
Morgan Stanley reiterated Nvidia at overweight but cut its price target to $267 per share from $300, citing CEO resignation and China regulatory risks.
Truist downgraded Nvidia to hold from buy due to concerns over cultural impact of Jensen Huang’s departure and potential China revenue headwinds.

Friday rating changes across sectors

As reported by CNBC, Wall Street firms issue a broad set of rating changes on Friday, with Loop upgrading Autodesk to buy from hold on improving fundamentals and a more attractive risk-reward profile, while Stephens starts Korn Ferry at overweight citing earnings growth potential.

StoneX initiates Birkenstock at buy, saying the footwear company has several growth levers, and Roth starts Allegro MicroSystems at buy, arguing investors underappreciate growth tied to data center demand even as its automotive exposure remains intact. Stephens also initiates Service Corp at overweight, pointing to a growing preneed backlog, continued pricing and manageable cremation headwinds.

Elsewhere, KeyBanc upgrades Palo Alto Networks to overweight from sector weight, saying investors should buy the dip as security budgets accelerate through 2027. Piper Sandler lifts Americold Realty Trust to overweight from neutral on further revaluation upside, while Roth starts Analog Devices at buy, citing room for an industrial recovery and stronger-than-expected data center drivers.

Additional calls include Goldman Sachs reiterating CoreWeave at buy, Rothschild & Co Redburn downgrading Broadcom to neutral from buy on limited near-term upside, Baird upgrading Domino’s Pizza to outperform from neutral, and Stifel cutting Lowe’s to sell from hold ahead of fiscal third-quarter earnings. Jefferies upgrades Steris to buy from hold, StoneX starts Deckers at buy, Deutsche Bank raises Installed Building Products to buy from hold, and Piper Sandler initiates Innio at overweight.

Nvidia split view highlights AI and governance risks

Analyst commentary on Nvidia stands out because firms remain divided even as the broader AI investment theme continues to support semiconductor demand. Wolfe reiterates Nvidia, Broadcom and Marvell at outperform, saying AI inference demand remains strong and that estimate upside persists despite financing and power availability concerns.

Morgan Stanley also reiterates Nvidia at overweight but cuts its price target to $267 per share from $300. The firm says the resignation of the chief executive, the lack of an immediate permanent successor and China regulatory risk are significant setbacks, but it still views the company’s underlying foundation and risk-reward profile positively on more conservative assumptions.

Truist takes a more cautious position, downgrading Nvidia to hold from buy because of concerns about the company’s culture following Jensen Huang’s resignation and potential China-related revenue pressure. The note says worries extend beyond leadership change to whether shipped GPUs became accessible to companies and government entities in China, an issue that could weigh on future performance.

Other notable calls tied to long-term growth themes include Wells Fargo initiating Denali Therapeutics, Alector and Korsana Biosciences at overweight based on optimism around transferrin receptor technology in Alzheimer’s disease, and KeyBanc reiterating SpaceX at sector weight ahead of Starship’s 15th integrated flight test scheduled for Nov. 13.

We have also discussed the broader context around AI data-center financing as rising costs, delays, and power constraints pressure U.S. buildout plans.

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