Abstract:
How much is Jensen Huang worth to Nvidia shareholders? Many Wall Street analysts believe that the weight is very heavy. On the eve of Huang Renxun's dismissal, Citigroup analysts Atif Malik and Papa Sirah lowered their target price from $285 to $225 overnight. They wrote: "Huang Renxun is at the core of strategy, product vision, customer relations and investor confidence, and management changes will bring uncertainty pressure to the stock price." Citigroup still maintains a buy rating on Nvidia, with the stock price at $163 before the market opens.
Investment bank Oppenheimer directly canceled the target price. Its analysts said: "It will be difficult for the successor to shoulder the heavy burden, and there is currently no suitable candidate." At the same time, he raised the risk: core talents may follow Huang Renxun and leave Nvidia.
Bernstein analysts said: "Our intuition tells us that the problems behind the incident may not have fully surfaced; we choose to lower our expectations." They slashed the target price from US$400 to US$200.
Sebastian Nagy and Anna Bilbo, analysts at Chicago investment bank William Blair, said they are worried about increased government regulatory scrutiny and a power vacuum in management. Analysts added that even without this crisis, the substitution competition faced by Nvidia chips continues to intensify.
Dan Ives, a technology bull analyst with a distinctive style, uses many classic sayings in his research reports.
He wrote in a report released by the new agency Yorkville Ives that "the trend is clear." Huang Renxun has caused major negative events for himself and has also spun a complicated web for Wall Street and Silicon Valley. His days at Nvidia may be numbered.
Ives’ judgment: With Huang Renxun at the helm, Nvidia’s valuation is US$300 per share; without Huang Renxun, the valuation is US$225 per share.
Many institutions have downgraded Nvidia’s rating and target price, and some institutions still remain bullish. The following is a partial summary:
Downgrade rating
1． Bernstein-Société Générale: Downgraded to Market Perform, target price lowered from US$400 to US$200
2． Oppenheimer: Downgrade to Perform, revoke target price
3． William Blair: Downgraded to Market Perform
4． Evercore ISI: Downgraded to In Line, price target lowered to $186
5. Melius Research: Downgraded to Hold, target price lowered from US$315 to US$185
Reduce target price
1． Stiefel: Target price lowered from US$315 to US$205
2． Citi: Target price lowered from US$285 to US$225
3． RBC Capital Markets: Target price lowered from US$330 to US$230
4． BofA Securities: Target price lowered from US$350 to US$280
5. Yorkville-Ives: Target price lowered from $300 to $225
6. JPMorgan Chase: Target price lowered from US$320 to US$215
7. BMO: Target price lowered from US$340 to US$240
Maintain original rating
1． Mizuho: Maintain Outperform, target price of $250
2． UBS: Maintain Buy (Buy), target price $300
3． Raymond James: Maintain Strong Buy with target price of $515
4． Piper Sandler: Maintain Overweight, target price $300
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