Citigroup Lowers Nvidia Price Target Following Jensen Huang's Departure
Nvidia (NVDA) shares have faced significant volatility following the sudden departure of co-founder and CEO Jensen Huang amid reports of personal scandal and security concerns. The leadership vacuum, exacerbated by a flat management structure with no clear successor, has prompted major Wall Street firms to slash their valuations. Citigroup analysts Atif Malik and Papa Sylla lowered their 12-to-18-month price target from $285 to $225, while Bernstein halved its target to $200. Despite the leadership crisis and a recent $1 trillion loss in market capitalization, Nvidia's fundamental business remains robust. The company continues to dominate the AI chip sector with high barriers to entry due to its integrated compute systems. While investor confidence is shaken by the transition, strong sales guidance from interim CEO Colette Kress suggests that demand for Nvidia's hardware remains largely unaffected by the executive turnover.
Topics: Analyst Downgrade Artificial Intelligence CEO Resignation Stock Price Volatility
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Part of the story Citigroup Lowers Nvidia Price Target Following Jensen Huang's Departure (4 articles)