Nvidia CEO Jensen Huang board review RBC price target, Digi Mart USA News: RBC Capital lowered its price target on Nvidia Corp. (NASDAQ:NVDA) from $330 to $230. The cut came after Nvidia’s board met late Wednesday to decide whether to remove CEO Jensen Huang, a source told Reuters.
Nvidia shares were down 6.99% in premarket trading.
The board is also working with an outside firm to identify possible replacements. That marks a sharp shift from Sunday, when the board expressed confidence in Huang and his leadership team while opening an independent investigation with outside counsel.
Huang, 63, co-founded Nvidia, has no obvious successor and owns about 3.6% of the company.
RBC said the probe could lead to a change at the top and a period of uncertainty, with possible congressional hearings adding to the overhang. It sees limited near-term impact on the business, saying demand is outpacing supply by about 50% and the product roadmap is set for three years.
RBC said the longer-term impact of losing Huang shouldn’t be underestimated. Still, at 10x 2027 earnings, the stock more than reflects that risk.
Nvidia reports results on November 17.
