RBC Says Nvidia's Valuation Already Prices In CEO Risk

NVIDIA's stock fell after reports of potential CEO ousting and downgrades from Bernstein and Baird. Bernstein cut its target to $200 from $400, citing uncertainty. Despite this, analysts average a $316.48 target, 82% above the close. NVIDIA trades at a forward P/E of 14x, reflecting market doubts about growth. The stock is down 23.24% over the past month, underperforming the S&P 500.

Nvidia's shares fell 8.6% after hours following an investigation into CEO Jensen Huang's personal relationships. Analysts question leadership succession and governance risks. Competitors like AMD and Micron gained, with AMD up 13%. Nvidia's 33% drop from its high raises concerns about its impact on indices and the tech sector.

Bitcoin (BTC) dropped below $73,000, its lowest since August, amid a broader crypto market decline. Ethereum (ETH), Solana (SOL), and XRP also fell. Crypto-linked stocks like MSTR, BMNR, and ASST declined, with MSTR facing additional pressure from MSCI's index removal. Analyst Michael van de Poppe identified support levels for Bitcoin but suggested waiting for a price sweep before buying.

Nvidia shares dropped 8% premarket, potentially losing $590B in market value, as its board considers ousting CEO Jensen Huang amid controversy. This weighed on U.S. futures and AI-related stocks, with Nasdaq and S&P 500 futures down 0.6% and 0.3%, respectively. Asian and European markets also saw mixed reactions, with chip makers and tech stocks affected.

Nvidia's board is reportedly considering removing CEO Jensen Huang amid scandal. The company faces uncertainty over leadership succession, potential valuation impact, and key employee retention. Nvidia's stock fell 7.5% in premarket trading. Analysts note the execution of any change is crucial for the stock.

Alphabet (GOOGL) agreed to buy $10B of Anthropic stock at its IPO price, part of a $26B private placement. Nvidia also invested $10B. Anthropic plans to list on Nasdaq under ANT. Alphabet's shares are non-voting, with ownership capped at 14.99%. Anthropic reported $33.2B revenue for 2026, with an operating loss of $1.3B. Alphabet shares rose 1.10% on the news.