Dan Ives Says ‘Spy Soap Opera’ Could Send Nvidia Stock 30% Lower Without CEO: ‘There is Only One Jensen’
Chris Katje 7 hours ago
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“Jensen is the core DNA of Nvidia and its AI success and ambitions are heavily tied to him staying on as CEO," Ives said.
Tech analyst Dan Ives expects Nvidia Corporation (NASDAQ:NVDA) stock to fall as investors weigh the impact of an affair between CEO Jensen Huang and an alleged Chinese spy.
So far, Ives maintains an Outperform rating on Nvidia with a price target of $300. However, that price target hinges on Huang’s remainin with the company.
"The Jensen China Spy soap opera has been a black eye moment for Jensen and Nvidia and thrown the company, the Board, and of course Jensen into a very negative spotlight for his actions," Ives said in a new investor note.
What If Huang Goes?
Street estimates put Huang’s chances of removal as CEO by Nvidia’s board at 15%, Ives wrote.
"We would expect a Board investigation that could take 4 weeks to 6 weeks and will create a clear overhang on the stock until more news emerges from Nvidia,” he added. "At the end of the day, there is only one Jensen and Nvidia will dramatically change as a company if he is no longer CEO with a major negative ripple impact across the tech industry and AI Revolution."
Ives predicts a 25-30% hit to the Nvidia stock price if Huang gets fired.
"Jensen is the core DNA of Nvidia and its AI success and ambitions are heavily tied to him staying on as CEO,” Ives said. “Jensen is not replaceable."
Earnings on Deck
Analysts expect Nvidia to report Q4 revenue of $109.17 billion on Tuesday, Nov. 17. That’s up from $57.01 billion during its fiscal third quarter. Benzinga Pro puts earnings per share at about $2.48, up from $1.30.
The company beat analyst estimates for revenue in 16 straight quarters and 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.
Price Action
Nvidia stock is down 6.6% to $166.86 on Tuesday versus a 52-week trading range of $164.27 to $243.37.
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