Following Jensen Huang's resignation, several Wall Street investment banks lowered their target prices for Nvidia, with some institutions reducing their cuts by 40%-60%, and most by 20-35%, though most maintained a "buy" rating. Institutions generally believe that Nvidia's existing orders and the roadmap for its next two generations of products provide support for short-term performance, and profit expectations have not yet deteriorated significantly. The market's initial downward adjustment is focused on short-term valuation premiums. Medium- to long-term risks lie in management's execution capabilities, the financing cycle of the AI industry chain, the stability of key personnel, and customer relationships. Competitors such as AMD and Broadcom may seize the opportunity to gain market share. However, UBS cautioned against Nvidia's suspension of approximately $50 billion in AI industry investment support, which could potentially impact the financing cycle of the AI industry.
