Analysts weigh in on Nvidia’s future
Co-founder, President and CEO of US Technology company Nvidia, Jensen Huang, looks on during a press briefing in Paris on October 13, 2026.
Joel Saget | Afp | Getty Images
Nvidia investors are preparing for a future without Jensen Huang after the CEO’s resignation was announced on Thursday.
Markets were on tenterhooks ahead of the decision amid reports that the chip giant’s board had convened to discuss his future with the company. By the time of the announcement, at least six analysts had downgraded the stock between Wednesday night and Thursday morning.
The New York Times on Wednesday reported that Huang had engaged in a second extramarital affair with an employee. The CEO was already under scrutiny after Huang admitted to having a romantic relationship with a woman U.S. intelligence believes is a Chinese spy.
Nvidia announced on Thursday morning that, following a board meeting, Huang would step down after more than 30 years at the company’s helm.
CFO Colette Kress has been named interim CEO.
Those downgrading the stock included longtime Nvidia bull Ben Reitzes of Melius Research.
Nvidia shares were seen down more than 12% shortly after the open on Wall Street, bringing losses for the last month close to 25%.
Here’s what analysts and investors are saying about the company and the stock.
Melius Research: Hold, $185
Reitzes changed his rating for Nvidia to hold from buy. His price target is now $185 — down from $315 — is 6% above the level at which shares last closed.
“We thought we had experience, but nothing prepares you for what has happened at Nvidia over the last few weeks – and especially since Saturday. The only situation remotely close to this we can recall was HP in 2010. Waiting to see what that Board would do (and who they would hire) that time didn’t work out. It was really cheap, too, at ~9x EPS right after its initial swoon. Nvidia is a much stronger, more important company, but its market moves far faster, and this story touches geopolitical flashpoints. In this unique crisis, we have decided (reluctantly) to step aside on Nvidia (now a Hold) after recommending it since we launched our AI platform coverage universe in July 2023,” he said.
Evercore: In line, $186
Analyst Mark Lipacis downgraded Nvidia to in line from outperform. He also lowered his price target on shares to $186 from $465, implying 7% upside from Wednesday’s close.
“The Wall Street Journal reported Nvidia’s Board was ‘preparing to oust’ its CEO after he had two extramarital affairs, including one with a suspected Chinese spy. The NY Times reported that Nvidia’s Board hired law firm Wachtell Lipton to lead an investigation into the matter. While Nvidia’s Board said that it ‘has no reason to believe that either national security or Nvidia secrets were compromised,’ we believe that the investigation will take time and we expect NVDA’s P/E multiple will continue to compress consistent with our ‘Late-Innings of the Semi Cycle’ thesis, especially since Nvidia has no…
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