Jensen Huang Is ‘Core DNA of Nvidia and Its AI Success’: Dan Ives Says CEO ‘Not Replaceable’

Nvidia Corp. (NASDAQ:NVDA) stock is falling Monday after CEO Jensen Huang admitted to an affair with an alleged Chinese spy. With the Board of Directors investigating and the possibility that a CEO change could happen, Yorkville Ives analyst Dan Ives weighed in on what happens next.

Dan Ives on Nvidia Stock

Nvidia stock is one of Dan Ives’ 10 favorites in the technology sector after the midterm elections.

With the scandal at the forefront, Ives maintains an Outperform rating on Nvidia stock with a price target of $300. But Ives has the same question as many other investors.

"The big question every Nvidia and tech investor is asking this morning…Will Jensen stay on as CEO of Nvidia?" Ives said.

The analyst said there is "a small chance" that Huang is removed or steps aside from Nvidia, which Huang co-founded.

"Jensen is the core DNA of Nvidia and its AI success and ambitions are heavily tied to him staying on as CEO. Jensen is not replaceable…there is no other person on the management team bench that can step in seamlessly as CEO."

Ives said this is one of the risks for Nvidia investors.

"Jensen has become the global face of the AI revolution."

The analyst expects multiple congressional inquiries, creating an overhang on the shares. The investigation will also increase scrutiny of Nvidia’s chip sales to China, which Ives called a key battleground issue in Washington.

Earnings on Deck

The news surrounding Nvidia stock and Huang comes ahead of quarterly financial results, which will be reported on Tuesday, Nov. 17.

Analysts expect the company to report revenue of $109.17 billion and earnings per share of $2.48, up from $57.01 billion and $1.30, respectively, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in 16 straight quarters and beaten earnings estimates in 15 straight quarters.

Nvidia shares rose about 9% the day after its last earnings report in August, when the company beat revenue and earnings estimates and guided third-quarter sales above expectations.

This could be one of Nvidia’s most anticipated quarterly reports, with technology stocks selling off after the midterm elections and investors worried about the AI and data-center trade.

Nvidia Stock Price Action

NVDA Price Action: Nvidia shares were down 6.63% at $174.27 at the time of publication Monday, according to Benzinga Pro data. The stock’s 52-week range is $164.27 to $243.37.

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