Analysts cut Nvidia ratings after Jensen Huang's exit and upgrade AMD

what happened

According to Seeking Alpha, the S&P 500 closed lower on Friday as investors weighed uncertainty in the AI sector after Nvidia CEO Jensen Huang resigned amid reports of extramarital affairs.

Several brokers lowered their ratings on Nvidia. William Blair moved the stock to Market Perform and said Huang's likely departure would be a significant overhang on the shares in the near term. Evercore downgraded to In Line and cut its price target to $186 from $330. Melius, KeyBanc and Oppenheimer also lowered their views, while GF Securities cut its target to $188 from $235.

Rothschild & Co moved Broadcom to Neutral and lowered its target to $398 from $595, citing doubts about the quality and durability of earnings. William Blair, by contrast, upgraded AMD to Outperform, pointing to a possible gain from the fallout at Nvidia.

why it matters

A run of downgrades for the index's largest company puts pressure on Nvidia shares and on the AI sector as a whole, while the market awaits clarity on leadership and the congressional hearings RBC flagged. The AMD upgrade and the Broadcom downgrade suggest investor interest is shifting within the chip segment.

market impact

Nvidia: a wave of downgrades and leadership uncertainty weighs on the shares; AMD gains support from its upgrade.

• ▼Nvidia pressure down — downgrades driven by uncertainty over the company's leadership
• ▲AMD pressure up — upgrade on a possible gain from trouble at its main rival
• ▼Broadcom pressure down — downgrade over doubts about the durability of its earnings

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