Nvidia stock down 14% over a year as analysts halve price target after Huang scandal

A sharp slide

Nvidia shares dropped more than 5% on Thursday after the company announced it had cut ties with CEO Jensen Huang. The stock is down roughly 30% in the past month and more than 14% over the past 12 months, meaning anyone who bought in November 2025 is sitting on a substantial loss.

How the scandal unfolded

Huang admitted on Sunday to cheating on his wife with a woman suspected of spying for China. On Wednesday, the New York Times revealed a second affair with Kimberly Powell, Nvidia's president of healthcare. Calls for his resignation grew, and the company ultimately severed ties with him.

Analysts split

Bernstein halved its price target on the stock from $400 to $200. Senior analyst Stacy Rasgon said "Jensen is Nvidia," arguing the company's position stems from decisions Huang made a decade ago. SoFi strategist Liz Thomas told Yahoo Finance the market can survive without near-term results from Nvidia, but questioned what happens "without the visionary."

Leadership transition

CFO Colette Kress has taken over as interim CEO. Concerns also persist about a wave of new government investigations amid allegations that Nvidia facilitated the smuggling of its chips into China. Meanwhile, SpaceX CEO Elon Musk said it would be an "honor" to hire Huang, and the rocket company's shares jumped on the remark.

Why it matters

The AI industry relies heavily on Nvidia's powerful chips. How well the company contains the fallout could directly shape AI infrastructure investment in the months ahead.