Analyst Ives says Nvidia faces a dark day; board meets to discuss Jensen Huang's future
‘A dark day for Nvidia’: Here’s what analysts have been saying about Jensen Huang’s departure
Nvidia's board is meeting to decide whether to remove CEO Jensen Huang, who has led the company for more than 30 years; the company has not made a public statement, and analysts at multiple institutions have commented on his future. The stock has fallen 7% this week and was down about 5.4% more in premarket trading on Thursday. The New York Times reported on Wednesday that Jensen Huang had a second extramarital affair with an employee; he had earlier acknowledged a romantic relationship with a woman whom U.S. intelligence agencies believe is a Chinese spy. Dan Ives estimates Nvidia is worth $300 per share with Jensen Huang in place and $225 if he leaves; Citi cut its target price from $285 to $225 and said CFO Colette Kress could serve as interim CEO. Several analysts criticized the board for lacking a succession plan, UBS warned of the risk of concentrated holdings in tech stocks, and Bill Blain of Wind Shift Capital warned that Jensen Huang's departure could trigger another crash.
Analysts at multiple institutions give valuation judgments and succession assessments regarding a potential change of leadership at Nvidia, a sample for observing how key-person risk hits an AI leader.