HSBC Downgrades Nvidia, Says Stock May Struggle Until New CEO Is Named

According to CNBC, HSBC analyst Frank Lee downgraded Nvidia to hold from buy, saying the stock may struggle until the company names a permanent CEO. Lee cut his price target to $170 from $365, implying 2.3% upside from Thursday's close. Nvidia needs a permanent successor to Jensen Huang to take over from interim CEO Colette Kress, and Lee said uncertainty could persist until a succession plan is set and the new CEO demonstrates execution capabilities. He also said tighter export restrictions on Nvidia products are a serious possibility and could reduce fiscal 2028 earnings per share by 13%. Countries outside the U.S. and Taiwan accounted for 11% of revenue over the past six quarters. Lee's bear-case fiscal 2028 EPS estimate of $13.57 is 14% below current consensus of $15.77; his base-case estimate is $15.65.