Nvidia Slides 8.6% as CEO Probe Deepens, Bernstein Cuts to Market-Perform
NVDA is trading near its 52-week low of $164.27 (3.3% below the low) on elevated volume (2.6× avg).
Summary
Shares fell 8.6% after hours to about $158.80 after reports the board discussed CEO Jensen Huang's future and opened an independent probe; no removal decision was confirmed. Yorkville Ives says Nvidia's fair value could fall 25% without Huang as CEO, and the company's Asian supply chain is preparing for life after Huang, while Polymarket odds of Huang stepping down hit 88% and South Korean shares closed down amid the leadership uncertainty. The stock is now trading near its 52-week low of $164.27, and the selloff is being amplified by analyst action: Bernstein cut Nvidia to Market-Perform and halved its target to $200 from $400, Baird cut its target to $200, and Morgan Stanley kept Overweight but pulled the stock from its Top Pick list. The company also disclosed about $164.5 billion in commitments, including up to $105 billion for an OpenAI data center in Ohio and over $50 billion in lease and capacity guarantees — a large fixed obligation if hyperscaler spending growth slows to 40% or less in 2027, with 10%-30% of channel orders at risk. Michael Burry is separately alleging Nvidia pressured customers to order chips before data centers were ready, and the company bought $42.4 billion in equity securities over six months while planning about $10 billion of Anthropic shares at the IPO price. Nvidia reports quarterly results on November 17, the first read on whether the leadership turmoil and demand worries are hitting guidance.
At the time of this announcement, NVDA was trading at $158.78 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.2T. The 52-week trading range was $164.27 to $243.37. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.