Nvidia Shares Fall Sharply After Jensen Huang Announces Retirement

In depth

Nvidia's stock fell sharply after Jensen Huang announced he is stepping down as CEO. Baird downgraded its rating on the stock to "neutral" and lowered its price target from $500 to $200. Analyst Tristan Gerra calls for replacing founder and CEO Jensen Huang.

The following day the stock rose about 5% despite the downgrade, but on Wall Street there were concerns about uncertainty surrounding Huang's tenure and a possible slowdown in cloud infrastructure spending. Goldman Sachs and Morgan Stanley continued to see a target of $300 per share.

Bernstein downgraded the stock to "market perform" and cut its price target from $400 to $200. In late trading the stock lost about 8%. Oppenheimer eliminated its price target entirely and warned of a wave of departures among executives and engineers.