Evercore Slashes Target to $186 From $465 as CEO Exit Exposes $300B Cost Risk
NVDA is trading near its 52-week low of $148.8 (13% above the low) on elevated volume (5.2× avg).
Summary
Jensen Huang's immediate resignation, with CFO Colette Kress named interim CEO, is now being repriced by the Street: Evercore ISI cut NVDA to In Line from Outperform and cut its target to $186 from $465, while Truist moved to Hold from Buy ($174 from $346) and Craig-Hallum to Hold ($180 from $275). The stock fell as much as 14% Thursday before closing down 4.3%, and is down 11% on the week. The most concrete new risk item is the disclosure that NVIDIA's investments in customers and loan guarantees for data-center builds could expose it to up to $300 billion in costs if the market turns, feeding circular-financing concerns. Layered on top: a DOJ investigation naming NVIDIA alongside Super Micro and Megaspeed over alleged restricted chip shipments to China, and a delay to its next accelerator platform. Huang has agreed to testify before the House Foreign Affairs Committee on China export controls, with Senate lawmakers also seeking testimony. Q3 results are due next Tuesday — the first print under interim leadership, with AI chip demand and guidance now carrying succession risk on top of valuation.
At the time of this announcement, NVDA was trading at $167.84 on NASDAQ in the Technology sector, with a market capitalization of approximately $4T. The 52-week trading range was $148.80 to $243.37. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.