On November 13, GF Securities (Hong Kong) released a research report on Nvidia, downgrading its rating from "Buy" to "Hold" and lowering its target price from $235 to $188, a 20% decrease. This still represents an approximately 8.2% upside from the reference price of $173.73 on November 11. The report points out that Nvidia founder Jensen Huang resigned as chairman, CEO, and director on November 12, with CFO Colette Kress temporarily serving as CEO. The institution believes that Huang's importance to Nvidia and the entire AI industry makes his departure a significant risk due to his key leadership role. Under Huang's leadership, Nvidia's annual revenue grew from $27 billion in fiscal year 2023 to an estimated $420 billion in fiscal year 2027, driven by the Hopper, Blackwell, and Vera Rubin architectures. GF Securities predicts that AI capital expenditure growth may slow in 2028, and it remains to be seen whether the company can maintain its previous pace of innovation after Huang's departure. The target price reduction is based on a valuation of 12 times the expected earnings per share for fiscal year 2028.
