Nvidia Board Expected to Meet and Discuss Jensen Huang’s Future Amid Investor Scrutiny
Investors weigh leadership uncertainty
Nvidia is under scrutiny as it investigates CEO Jensen Huang’s relationship with an alleged Chinese spy. Huang said Sunday that he had been unfaithful to his wife, had not met his responsibilities to the company and would cooperate with the inquiry.
Huang also said he was committed to Nvidia and U.S. national security. He co-founded the company, which has become a leader in the artificial intelligence race.
Brokerages adjust their views
Baird cut Nvidia’s stock rating to neutral, pointing to limited visibility into 2027 data center spending, possible softer demand and uncertainty about Huang’s tenure. Morgan Stanley removed Nvidia from its Top Pick list but kept its overweight rating. The stock had fallen more than 25% since it received that designation the previous month.
Shares face broader pressure
Bank of America Global Research removed Nvidia from its U.S. 1 List. At least three other brokerages, including Wells Fargo and Citigroup, lowered their price targets earlier in the week.
Nvidia shares have also been caught in a broader technology selloff. The article links the decline to a midterm election result in which Democrats won majorities in both chambers of Congress, with the controversy adding pressure.
Key points
- Nvidia is investigating CEO Jensen Huang’s relationship with an alleged Chinese spy.
- Huang said he would cooperate with the company’s inquiry.
- Baird downgraded Nvidia to neutral, while Morgan Stanley retained an overweight rating.
- Nvidia shares have faced pressure from both the controversy and a broader tech selloff.