The analyst who's sure: CEO's departure would cut a trillion dollars from Nvidia

Analyst Dan Ives warns that the departure of Nvidia CEO Jensen Huang could lead to a 20%-30% drop in the stock and wipe out more than a trillion dollars from the company's market value, due to the lack of a clear succession plan. Despite this, Ives sets a price target of $300 per share.

Analyst Dan Ives warns that the departure of Nvidia CEO Jensen Huang could lead to a 20%-30% drop in the company's stock and wipe out more than a trillion dollars from its value. The article notes that the situation surrounding Huang exposes one of the chip giant's weak points: the lack of a clear succession plan. The word "succession" does not appear in Nvidia's latest annual report, unlike dozens of mentions in the reports of Microsoft and Alphabet. Huang himself has expressed reservations about a traditional succession plan, preferring ongoing knowledge transfer to employees. The management structure relies on Huang, with more than 50 senior executives reporting directly to him and no clear number two figure. Ives assesses that the likelihood of Huang being ousted is low, but warns that a departure could change the company's strategic direction. Despite the turmoil, he sets a price target of $300 per share, reflecting an upside potential of nearly 80%.