Key Highlights

  • At least six firms cut Nvidia (NASDAQ:NVDA) to Hold type ratings on November 12, 2026 after Jensen Huang's resignation, as one market summary reports, and the count has not been verified independently.
  • One firm halved its target to USD 200 from USD 400, and another cut its target to USD 186 from USD 465 and moved to In Line.
  • A third called the exit a material and potentially thesis changing event, and another firm cut its rating to Neutral with a USD 200 target a day earlier.
  • The mean target was USD 313 on Thursday, down from a fall peak of USD 329, and the stock traded near USD 166, about 14 times forward earnings.

What the Downgrades Say

The rating changes cluster around one theme: uncertainty about who will lead the company and how quickly a successor can be found. One firm moved to Market Perform and halved its target. Another moved to In Line from Outperform and cut its target by more than half to USD 186. A third moved to Perform and removed its target, calling Huang's departure a material event that could change the Investment thesis. Three more firms reportedly cut to Hold type ratings, though the ratings and targets for them were not provided in the summary. A separate downgrade to Neutral with a USD 200 target came on Wednesday, before the resignation, and is not one of the six. The scale of the target cuts is large compared with the stock's actual fall, which suggests that analysts are widening the range of outcomes. The wording used by some firms was strong, with one describing a possible break in the investment case, though none of the rating changes questioned the Demand outlook for AI computing.

Valuation After the Selloff

Even after the cuts, the average target remains far above the market price. The stock trades at 14.3 times forward earnings, near its five year low of 13.9 times and well below the five year average of 35.7 times. Consensus Earnings per share are USD 9.32 for the year ending January 2027 and USD 15.93 for January 2028, up from USD 12.82 ninety days earlier. One of the lowest targets, USD 186, equals about 11.7 times fiscal 2028 earnings, and at USD 165 the shares trade at around 10.4 times. Gross Margin is expected to bottom at 71% to 72% in the January quarter as memory prices climb. The summary of these figures shows that the bear case rests on Leadership and governance, while estimates for Revenue and profit are still rising. Analysts also point out that earnings estimates have kept rising even as targets fell, which is unusual and highlights how much of the cut reflects a higher risk premium and not weaker numbers.

How Investors May Read It

Rating cuts after a sharp decline can mark either a Capitulation point or the start of a longer reset. Those who see the issue as temporary point to the lack of any change in reported demand, the interim leadership under the finance chief and the November 17 results. Those who are cautious note that a search for a permanent chief executive can take months and that scrutiny from lawmakers could complicate export policy. Long term holders also have to weigh whether the founder's vision and customer relationships can be replaced, and some buy side investors may wait for a named successor before adding to positions. Others are likely to publish updated notes after the earnings report, which means the current set of ratings may be short lived.

Where Things Stand

The next data point is the November 17 report, the first with Kress as interim chief executive. Watch whether analysts restore ratings after the results, whether more firms cut targets, and how quickly the board names a permanent leader. The downgrade count is a market summary figure and should be checked against individual research notes.