HSBC cuts Nvidia to hold, cites CEO uncertainty and export risks

HSBC downgraded Nvidia from buy to hold, citing uncertainty until a permanent CEO is named, with a price target cut to $170 from $365. The stock fell over 4% following the announcement. Analyst Frank Lee noted that tightened export restrictions could reduce Nvidia's fiscal year 2028 earnings per share by 13%, as 11% of revenue comes from countries excluding the US and Taiwan. He said uncertainties will prevail until a succession plan is established. Jensen Huang left amid allegations of an affair with a Chinese spy, which China dismissed, and reports of relationships with employees. Nvidia, a key AI chip supplier, joins other firms downgraded this week by Truist, Evercore ISI, and Bernstein.