NVIDIA shares drop 2.8% as CEO Jensen Huang departs amid board findings
NVIDIA shares fell 2.8% in morning trading after CEO Jensen Huang's immediate departure, announced Thursday evening following board findings of multiple extramarital affairs, including one with a woman possibly linked to the Chinese government. CFO Colette Kress was named interim CEO. Wall Street analysts broadly downgraded the stock, with Bernstein cutting its price target to $200 from $400, citing leadership uncertainty rather than deteriorating fundamentals. Melius, Oppenheimer, and William Blair also moved to neutral ratings, while Goldman Sachs and JPMorgan lowered targets. The stock trades well below its 52-week high of $243.37, despite record retail buying Thursday. The leadership crisis coincides with October's Producer Price Index rising 6.5% year-over-year, reinforcing expectations of a Federal Reserve rate hike in December.