The artificial intelligence chipmaker saw a cluster of analysts lower their ratings for the company’s stock on Wednesday amid fears of a leadership vacuum. Evercore lowered its rating to “In Line” with a price target of $186, joining William Blair and Bernstein, which cut its target to $200, and Oppenheimer in downgrading the shares. The wave of cuts followed reports that CEO Jensen Huang may soon depart the company, prompting Oppenheimer to remove its price target entirely—a move typically reserved for highly volatile penny stocks.
Evercore noted that the firm sees no obvious number two operational executive or clear succession plan and said an ongoing investigation into the matter could last five months or longer. Other brokerages also trimmed their targets, including BofA Securities to $280 and Citi to $225. However, some analysts remained bullish, with Raymond James reiterating a “Strong Buy” rating and a $515 price target.
