HSBC cuts Nvidia to Hold on leadership succession uncertainty

HSBC downgraded Nvidia's stock rating from "Buy" to "Hold" on Wednesday, setting a price target of $170, citing uncertainty over the company's leadership succession. The move follows CEO Jensen Huang's resignation on November 12. CFO Colette Kress was named interim CEO, but no permanent successor plan has been announced. Nvidia shares have fallen 22% since October 29, compared to a 4% decline in the Nasdaq over the same period. The stock's forward P/E ratio of 11 times is at its lowest level in 15 years. Several analyst firms have adjusted their outlooks, with Bernstein maintaining a "Market Perform" rating at $200, while DA Davidson and Barclays cut their price targets. Wells Fargo kept an "Overweight" rating at $300, and Jefferies noted Huang's departure may signal rising US-China tensions affecting AI chip exports.