This article first appeared on GuruFocus.
NVIDIA (NASDAQ:NVDA) shares rose 1.68% to $171.72 at 9:45 a.m. ET on Wednesday, November 11, in regular trading, shrugging off a Baird downgrade to Neutral from Outperform after a bruising two-day slide. The bounce landed the morning after Anthropic's amended IPO filing disclosed that NVIDIA will buy about $10 billion of Anthropic shares at the offering price.
The board's independent review of CEO Jensen Huang, launched on November 8, is still open.
Warning! GuruFocus has detected 3 Warning Signs with NVDA.
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Baird cut its target to $200 from $500 and paused its 2027 data center forecasts because visibility had deteriorated, according to 24/7 Wall St., though it still sees demand running ahead of supply. The Anthropic filing assigns NVIDIA 135,135,135 shares at the $74 midpoint, tying Google for the largest slice of a $26 billion concurrent placement.
The board has said it has no reason to believe national security or company secrets were compromised, and Huang has agreed to cooperate. Third-quarter fiscal 2027 results arrive after the close on November 17, per the same report.
The $10 billion check equals roughly 0.24% of NVIDIA's $4.16 trillion market value, so the cash is small; the strategic signal is not. Anthropic runs on NVIDIA GPUs alongside Trainium, TPUs and AMD GPUs, and a direct stake helps keep NVIDIA in that mix, although investors may question vendor money flowing back into a customer.
GuruFocus gives NVIDIA a GF Score of 91/100, with Profitability Rank 10/10, Financial Strength 9/10 and Momentum Rank 8/10, but only a 2/10 GF Value Rank. At $171.72, the shares sit 59.9% below GuruFocus's GF Value of $428.63, yet GuruFocus tags the setup "Possible Value Trap, Think Twice," so that gap is a model output, not assured upside. November 17 is the next hard test.
