Nvidia Faces Board Probe and Potential US Export Controls
Nvidia is investigating CEO Jensen Huang amid potential new US export controls on AI chips sold to China and mixed analyst price targets.
Nvidia Inc. is managing a board probe into allegations involving CEO Jensen Huang and an executive at the Chinese company Megaspeed. The company board stated that no evidence exists that national security or company secrets were compromised during the events under investigation.
Simultaneously, the Trump administration is considering new US export controls on advanced AI chips sold to China as part of the National Defense Authorization Act. These potential restrictions have led to divergent views among financial analysts regarding the company's valuation.
BofA Securities reiterated a Buy rating with a $350 price target, though it warned that competitors like AMD, Broadcom, and Marvell could gain traction if Nvidia faces further distractions. In contrast, Mizuho lowered its price target to $250, while RBC Capital and Bernstein maintained Outperform ratings with targets of $330 and $400, respectively.
