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Nvidia stock downgraded by Baird amid Jensen Huang affair scandal
Fox Business • • business
Key Points:
- Nvidia is under investor scrutiny following CEO Jensen Huang's admission of an affair with an alleged Chinese spy, prompting an internal investigation initiated by the company's board.
- The board's probe aims to determine if any national security or company secrets were compromised, although no evidence has surfaced so far.
- Several financial firms, including Baird, Morgan Stanley, and Bank of America, have downgraded Nvidia's stock ratings or removed it from top lists due to uncertainty about future spending, demand, and Huang's leadership.
- Nvidia's shares have declined over 25% since the scandal emerged, resulting in a market capitalization loss exceeding $427 billion, though the stock showed some recovery with a 3.5% gain in mid-week trading.
- Despite the controversy, Nvidia remains highly rated on Wall Street, with a median price target suggesting an 82% upside and the majority of brokerages maintaining "buy" or "strong buy" ratings.
