Nvidia shares dropped 7% in post-market trading after firms like Bernstein slashed price targets and others removed the stock from top recommended lists. The crisis stems from an internal board investigation, paired with an FBI inquiry, into Huang's alleged extramarital relationships with a company executive and an individual reportedly tied to Chinese intelligence. Nvidia now risks losing roughly $600 billion in market value since the probe began, compounding a month-long decline exceeding 20%. Analysts caution that removing the co-founder could prompt another 20% slide, leaving a critical void at the roughly $4 trillion company.
Key points
Global investment brokerages are turning bearish on Nvidia as governance issues intersect…: Global investment brokerages are turning bearish on Nvidia as governance issues intersect with wider skepticism over artificial intelligence spending.
Nvidia risks erasing around $600 billion in total market capitalization as leadership suc…: Nvidia risks erasing around $600 billion in total market capitalization as leadership succession planning gets underway.
Analysts caution that terminating Jensen Huang could trigger an additional 20% share pric…: Analysts caution that terminating Jensen Huang could trigger an additional 20% share price drop for the chipmaker.
Sources checked by our analysis pipeline: 1
Global investment firms have turned increasingly bearish on Nvidia, cutting their price targets for the world's most valuable semiconductor company by market capitalisation as governance concerns and leadership uncertainty mount.
Baird issued a rare downgrade of Nvidia, while Morgan Stanley removed the stock from its Top Pick list on Wednesday, while BofA Global Research also removed Nvidia from its US 1 List, while at least three other brokerages, including Wells Fargo and Citigroup, lowered their price targets earlier this week.
Adding to the negative sentiment, Bernstein on Thursday slashed its price target on Nvidia shares by half, from $400 to $200. Stacy Rasgon, a senior analyst at Bernstein, told CNBC's 'Squawk Box Asia' on Thursday that the allegations involving Huang and a direct report could make it "much tougher for the board to leave him in position," according to the report.
Huang's reported relationship with a Chinese businesswoman, who has been alleged to have links to Beijing's intelligence services, has triggered an internal board investigation, an FBI inquiry, and calls in Washington for him to step down. The developments have…
Succession discussions are identifying prominent technology leaders who could eventually take the helm of the semiconductor giant. The identified prospects encompass both internal company veterans responsible for core financial and software achievements as well as high-profile executives from outside firms. Evaluating these potential replacements signals long-term planning regarding future leadership across both hardware engineering and software ecosystems.
The Singaporean firm at the heart of the ongoing controversy involving Nvidia broke its silence on Thursday by releasing its initial public response. This development represents the organization's first official comments addressing the situation since the dispute initially emerged. Further specifics regarding the precise matters addressed in the communication have not yet been revealed.
SMA Solar has narrowed its guidance for 2026 to the upper half of its previously projected ranges. The company has not provided additional details regarding specific figures or targets within the updated forecast.