After a sharp sell‑off triggered by the resignation of CEO Jensen Huang amid personal scandals, Nvidia’s stock has fallen about 13 % this week, marking its worst weekly decline since April 2025. While investors have historically been rewarded for buying the dip after market pullbacks, analysts are now warning that the situation is different. Truist analyst William Stein downgraded the chipmaker to hold and cut his price target to $174, citing concerns not only about Huang’s departure but also about potential cultural damage and the possibility that Nvidia GPUs reached Chinese entities, threatening future revenue. Recent Bloomberg reporting linked a firm founded by Alice Huang—an alleged Chinese operative connected to the former CEO—to the acquisition of smuggled AI chips for a Shanghai data center. The heightened regulatory risk could intensify U.S. efforts to restrict semiconductor exports to China ahead of the Trump‑Xi summit and a more scrutiny‑friendly Congress, according to JPMorgan credit analyst Erica Spear.
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