Veteran Analyst Downgrades Nvidia Stock Ahead of Earnings

What happened

GF Securities analyst Jeff Pu downgraded Nvidia from Buy to Hold and cut his price target from $235 to $188, citing uncertainty after CEO Jensen Huang’s departure. Nvidia named finance chief Colette Kress interim CEO, while its board searches for a permanent successor.

Confirmed

Global impact / market context

The analyst’s concern is that Nvidia and the wider AI industry rely heavily on Huang’s leadership. If uncertainty over succession affects customer confidence or investment decisions, Nvidia’s sales outlook and AI-related spending across the sector could face pressure; that is a risk, not a reported outcome.

Analyst inference

Pu expects Nvidia to beat estimates when it reports on Nov. 17, but expects its forecast for coming quarters to match estimates. He said this would be the first such outlook since the AI spending boom began, setting up a contrast between near-term expectations and leadership concerns.

Confirmed

What to watch

1. Nvidia’s Nov. 17 results and forecast will show whether reported performance and expected business growth match Pu’s expectations for a beat and in-line guidance. Confirmed
2. The board is considering internal and external candidates for a permanent CEO; the selection and transition plan could clarify how leadership responsibilities will be maintained. Confirmed
3. Pu advised watching Nvidia’s AI-sector investments, safeguards, and outstanding guarantees; changes or disclosures could indicate how much financial exposure remains tied to those commitments. Confirmed

Evidence

• gurufocus.com