Nvidia (NVDA) shares remain in the spotlight on Nov. 12 after CEO Jensen Huang resigned amid a controversy involving his affair with an alleged Chinese spy, as well as reports of an additional extramarital affair with an Nvidia colleague.
The leadership upheaval has prompted Wall Street analysts to reassess the chipmaker’s valuation, with star analyst Dan Ives of Yorkville Ives warning that NVDA shares could be worth 25% less without its iconic founder at the helm.
At the time of writing, Nvidia is down some 30% versus its year-to-date high.
Ives Trims Fair Value Estimate for Nvidia Stock
The Yorkville Ives’ lead analyst has been vocal in highlighting the artificial intelligence (AI) chipmaker’s dependence on Huang’s leadership.
With Huang as the chief executive, he assigned a fair value of $300 to NVDA shares, but has now lowered that estimate to $225.
According to Dan Ives, Huang is not just a corporate executive, but the central architect of Nvidia’s product roadmap, AI strategy, customer relationships, and long-term vision.
The analyst described Huang as effectively “irreplaceable,” noting that uncertainty surrounding the company’s succession plan, future strategic priorities, and board oversight could hurt sentiment in the near term.
There’s No Need to Panic Sell NVDA Shares
Despite the aforementioned warning, Ives did not suggest in his report that Nvidia’s core business is broken in any way.
NVDA remains the “dominant supplier” of AI accelerators and data-center GPUs, and the analyst remains convinced that its tech leadership does not disappear overnight because of a management change.
However, he cautioned that investors may demand a larger risk premium until a credible succession plan emerges.
The market must now assess whether a new chief executive can maintain Nvidia’s innovation pace, navigate increasingly complex geopolitical challenges, and preserve relationships with hyperscale customers driving the AI boom.
Note that Barchart’s opinion on Nvidia shares has also reduced to “40% SELL,” signaling technical momentum is turning against them as well.
Wall Street’s View on Nvidia
Other Wall Street analysts also remain constructive on NVDA stock despite the Huang shock.
The consensus rating on Nvidia sits at “Strong Buy,” with the mean price target of about $324 indicating massive upside potential from current levels.
On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.