Nvidia Stock Slumps Amid CEO Resignation and Analyst Downgrades
The CNN report said Nvidia's resignation of CEO Jensen Huang created uncertainty about the company's financing role in the AI sector and the broader AI boom. Industry leaders at a San Francisco AI summit expressed doubt about how the departure would affect Nvidia and the AI-chip market, according to Yahoo News Singapore. The Business Times noted that Singapore retail investors sharply increased trading in Nvidia shares, with volumes rising up to thirteen times the prior average. The New York Times reported that Nvidia's stock slipped more than 4% on after Huang stepped down, while broader markets edged higher. The Motley Fool observed that Broadcom shares rose over 5% after Nvidia announced the resignation, as investors speculated the chipmaker could benefit. BNN Bloomberg reported that Nvidia's shares fell about 5% on following Huang's resignation amid a scandal involving an alleged affair with a suspected Chinese spy. Proactive financial news said Wall Street's main indexes opened lower after the resignation, dampening confidence in technology and AI stocks. Earlier coverage showed analysts projecting modest stock movement through 2027 amid legal and regulatory pressures, according to The Motley Fool. The Globe and Mail reported that Baird downgraded Nvidia to neutral and Morgan Stanley removed it from its Top Pick list over concerns about Huang's alleged affair.
NDTV Profit said Baird cut the price target to $200, citing reduced visibility on data-centre demand and uncertainty surrounding the CEO. Moneycontrol. com also noted the $200 target cut, adding worries about a slowdown in AI spending, supply constraints and doubts about Huang's tenure. The Motley Fool reported a near-10% drop in Nvidia shares after election results and a spying report, with investors eyeing fiscal Q3 earnings due Nov 17. Yahoo Finance recorded that on Nov 10 Nvidia shares fell more than 6% as AI-demand concerns and a board investigation led Microsoft to reclaim the world’s second-largest market valuation. 24/7 Wall St. said the board launched an investigation into Huang after he admitted infidelity, while Jim Cramer continued to push for a large stock buyback. The outlet also quoted Cramer calling Nvidia the cheapest stock in about a decade as its shares fell 22% over the prior month.
