Bernstein: Jensen Huang Scandal Introduces Two Major Risk Factors, Nvidia (NVDA.US) Valuation Narrative Changes

According to Jinzhong Finance APP, on November 9, the Bernstein U.S. semiconductor team maintained Nvidia’s target price at $400 and rated it as “outperform.” The entire report was rewritten regarding the risk warning in the investment conclusion: the opportunities in data centers remain immense, but recent allegations against the CEO have introduced “additional key person risk and a potentially prolonged period of uncertainty.” The weight of this statement far exceeds simply “maintaining a buy rating.” It essentially acknowledges that there is a variable in Nvidia’s valuation model—Jensen Huang himself—that had never previously been individually priced.