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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuNvidia is going to struggle until it gets a new CEO to permanently replace Jensen Huang and take over from CFO-turned-interim-CEO Colette Kress, according to HSBC. Analyst Frank Lee downgraded the chipmaker to hold from buy. His price target of $170, down from $365, implies upside of just 2.3% from Thursday’s close. “We believe the uncertainties will prevail until a permanent succession plan is laid out and the new CEO is able to demonstrate execution capabilities,” Lee said in a Friday note to clients. Lee thinks tightened export restrictions on the company’s products are serious possibility, which could dent Nvidia’s fiscal year 2028 earnings per share by 13%. NVDA 5D mountain NVDA 5-day chart “During the past six quarters, 11% of total revenue was from countries excluding the US and Taiwan, which we believe could be the focus of restrictions,” he said. “Our sensitivity implies that if NVIDIA loses 11% of FY28e revenue, its EPS downside could be 13% compared with our base case EPS of USD15.65. The bear case EPS of USD13.57 is 14% below current consensus of USD15.77.” Huang left the company amid suspicions that he had had an affair with a Chinese spy, though the Chinese government has dismissed such claims. The New York Times also reported that Huang had a relationship with a person who reported to him. Reuters later reported that Huang had an ” intimate relationship ” with a second employee. Nvidia, which makes top-of-the-line graphics processing units, is perhaps the linchpin of the global AI supply chain. It has been called the ” central bank of AI ,” maintaining investments in its own customers alongside financing platforms with some of the biggest names in private credit . Shares fell more than 4% following HSBC’s downgrade. HSBC joined a slew of banks and Wall Street research firms that lowered their rating on the stock this week. Among them are Truist , Evercore ISI, William Blair, Oppenheimer and Bernstein .Read More