Nvidia Shares Slip as Wall Street Weighs CEO Exit and Growth Outlook

Nvidia stock dropped 3.6% around midday on Friday, extending a broader retreat that has left shares down roughly a third from their peak just over a month ago. The recent downward pressure follows the unexpected resignation of longtime CEO Jensen Huang, compounding earlier market anxieties surrounding rising interest rates that could impact neocloud partners and potential data center regulatory actions following midterm elections.

Despite the leadership vacuum and ongoing federal investigations in Washington regarding chip export rules and national security, major financial institutions remain optimistic about the hardware giant. Wells Fargo reiterated its overweight rating with a $300 price target, suggesting the high-profile exit could act as a clearing event that forces motivated sellers out and signals a market bottom. Meanwhile, Rosenblatt adjusted its price target downward from $390 to $300 while keeping a buy rating, pointing to resilient company fundamentals and strong backing from employees, suppliers, and customers.

Currently trading at $160 per share, reaching the $300 target would require an 88% gain—surpassing the company's previous all-time high of $243.37 reached in October. However, analysts note that replacing Huang's strategic foresight and extensive industry network presents a monumental challenge for interim CEO and CFO Colette Kress, as well as any permanent successor.

What to watch next: Monitor the ongoing federal national security investigations and any updates from the board regarding the search for a permanent CEO.