Nvidia's stock has fallen 29% over the past six weeks, resulting in a market cap loss of approximately $1.6 trillion, as it dropped below Apple in valuation. The recent decline accelerated after CEO Jensen Huang resigned due to revelations of extramarital affairs, including one with an alleged Chinese spy.
Colette Kress, the finance chief, has been appointed as interim CEO while the board searches for a permanent replacement. Following Huang's resignation, Nvidia shares fell 4.3% on Thursday, contributing to an 11% loss for the week. Analysts have expressed concerns about the transition period, with Gil Luria from D.A.
Davidson lowering his price target from $300 to $200 but maintaining a buy rating. The stock's decline has also been influenced by broader market trends, including concerns over rising interest rates and the impact of recent midterm elections on the artificial intelligence sector.
Nvidia is set to report quarterly results soon, with analysts expecting a significant year-over-year revenue growth of 91% to $108.9 billion, although some believe that the departure of Huang may create a lingering negative sentiment around the stock