HSBC Downgrades Nvidia to Hold Amid CEO Succession Uncertainty and Export Risk
HSBC analyst Frank Lee has downgraded Nvidia from 'Buy' to 'Hold,' significantly lowering the price target from $365 to $170. The downgrade is driven by concerns regarding leadership continuity, specifically the lack of a permanent successor for Jensen Huang and the current interim arrangement involving Colette Kress. Beyond management uncertainty, HSBC warns that tightening export restrictions could pose a significant financial threat. If regulations impact the 11% of revenue currently derived from regions outside the US and Taiwan, Nvidia's fiscal year 2028 earnings-per-share (EPS) could face a potential downside of 13%.
Topics: Export Restrictions Leadership Succession Price Target Change Stock Downgrade