Dan Ives: If Jensen Huang is replaced, NVIDIA's market cap could fall by 25% to 30%

On Nov. 11, according to Business Insider and Benzinga, Dan Ives, Senior Managing Director at Yorkville Ives, stated in a recent investor report that if Jensen Huang is removed as CEO of NVIDIA, the company and its stock would suffer a significant valuation decline of 25% to 30%, altering the firm's future direction and reshaping the AI GPU competitive landscape in the United States, globally, and particularly in China.

Ives labeled the alleged extramarital affair involving Huang and a suspected Chinese spy a "shameful moment" for NVIDIA. Citing Wall Street estimates, he noted that the likelihood of the board replacing Huang is approximately 15%, with an internal inquiry likely taking four to six weeks, during which time it would place notable downward pressure on the share price.

Ives stated, "Jensen Huang is core DNA to NVIDIA; he is irreplaceable," pointing out that no current management member could seamlessly assume the CEO role, underscoring NVIDIA's key person risk. He maintains an "Outperform" rating on NVIDIA with a $300 price target, contingent on Huang remaining in office.