Nvidia CEO Jensen Huang resigned Thursday morning, according to an update CNBC added to its Morning Squawk newsletter. The newsletter had reported that Nvidia's board met overnight to decide whether to oust him, with no outcome announced at the time, and that shares were down around 5% in premarket trading.
CNBC cited a New York Times report that Huang had another extramarital affair, with Nvidia Vice President of Healthcare Kimberly Powell. CNBC also reported that the office of Sen. Elizabeth Warren of Massachusetts has asked the Trump administration to preserve all documents related to Nvidia's exports of advanced AI chips to China. Sen. Kevin Cramer of North Dakota has called on Huang to resign, according to CNBC. Elon Musk said it would be "an honor" to hire Huang.
Analysts turned more bearish, according to CNBC. Bernstein cut its price target to $200 from $400 and moved to market-perform, and Baird cut its target to $200 from $500 and downgraded to neutral. Morgan Stanley removed Nvidia from its Top Pick list, while Wells Fargo and Citi trimmed targets to $300 and $285 and kept positive ratings. Yorkville Ives put Nvidia's value at $300 per share with Huang and $225 without. AMD and Broadcom shares gained in early trading.
