Multiple Analysts Cut Nvidia Ratings and Price Targets Amid CEO Uncertainty
Investment banks including William Blair, Oppenheimer, and Stifel downgraded Nvidia or slashed price targets, citing leadership risks surrounding CEO Jensen Huang ahead of Q3 earnings.
A wave of analyst downgrades and price target cuts hit Nvidia this week, driven by growing uncertainty regarding the future of CEO Jensen Huang. Firms including William Blair, Oppenheimer, Stifel, Bernstein, Wells Fargo, Robert W. Baird, and Citi revised their outlooks, signaling that governance risks have become a primary factor in the stock's valuation.
On November 12, William Blair downgraded Nvidia from 'Outperform' to 'Market Perform,' warning that the potential departure of Huang and increased regulatory scrutiny could act as significant near-term headwinds. Oppenheimer also downgraded the stock to 'Perform' and removed its price target entirely, arguing that leadership changes could complicate execution and undermine investor confidence. Stifel maintained a 'Buy' rating but sharply reduced its price target from $315 to $205, now considering Huang's departure as a base-case scenario. Bernstein analyst Stacy Rasgon cut the target from $400 to $200, identifying the viability of Huang remaining in his position as the biggest risk.
Other revisions included Wells Fargo lowering its target from $315 to $300, Robert W. Baird cutting from $500 to $200, and Citi reducing from $285 to $225. While most analysts continue to recognize Nvidia's strong fundamentals in AI infrastructure, these moves highlight that management uncertainty has superseded underlying business performance as the key driver of valuation concerns.
Nvidia is scheduled to release its third-quarter earnings on November 17. The recent downgrades follow reports that the board is preparing to remove Huang, a move that could trigger independent investigations and briefings before the U.S. House of Representatives.