HSBC just dropped NVIDIA's rating from "buy" to "hold," mainly because the company is still searching for a new CEO to permanently replace Jensen Huang.
Analyst Frank Lee also slashed the price target to $170 from $365, pointing out that leadership changes could shake up NVIDIA's performance and future plans until someone permanent steps in.
Colette Kress faces 13% EPS risk
With CFO-turned-interim-CEO Colette Kress at the helm, there are added concerns about export restrictions, especially since 11% of NVIDIA's recent revenue came from outside the US and Taiwan.
Lee warned that tougher export rules could cut NVIDIA's earnings per share by 13% in 2028, dropping it to $13.57 from the current consensus of $15.77.