7 hours agoNvidia sheds $427B in market value as Wall Street questions AI chip giant’s future amid CEO scandal

Nvidia has shed more than $427 billion in market value over two trading sessions as a broader technology stock selloff and mounting concerns surrounding CEO Jensen Huang’s future weigh on the artificial intelligence chipmaking giant, although its shares rebounded Wednesday.

Wall Street analysts are growing increasingly cautious about the company’s outlook, with Baird downgrading Nvidia shares to “neutral” on Wednesday and Morgan Stanley removing the stock from its Top Pick list.

Baird cited uncertainty over data-center spending in 2027, concerns that demand could soften following years of massive AI investment and questions about Huang’s future at the company beyond next year.

Morgan Stanley maintained its “overweight” rating on Nvidia but acknowledged the uncertainty surrounding its longtime chief executive.

“We do acknowledge that the near-term uncertainty will remain, as CEO Jensen Huang’s leadership is crucial to the company’s strategic direction in our view,” Morgan Stanley analysts said in a note.

The Wall Street reassessment comes as Huang faces scrutiny over a reported affair with a Chinese businesswoman suspected by U.S. security services of having ties to Beijing’s intelligence apparatus. The allegations have prompted an internal investigation by Nvidia’s board and an FBI inquiry.

Nvidia has previously said its board has no reason to believe U.S. national security or company secrets were compromised and that Huang is cooperating with the internal review.

Despite the growing uncertainty, Nvidia remains widely favored among Wall Street analysts. According to LSEG data cited by Reuters, 59 of 64 brokerages continue to rate the company’s shares “buy” or “strong buy.”

Nvidia shares were up 3.8% as of approximately 11:45 a.m. ET Wednesday, according to the Associated Press, as AI-related stocks rebounded across Wall Street. The broader rally was fueled in part by stronger-than-expected results from AI cloud provider CoreWeave, whose shares surged 25%.

Reuters contributed to this report.