The fallout from the Nvidia (NVDA) board of directors’ dismissal of co-founder Jensen Huang from his former role as CEO continues to reverberate across the technology and business worlds. Chief Financial Officer Colette Kress has taken the reins as interim CEO, but countless questions remain, ranging from who will become the next permanent leader of one of the world’s largest companies to whether it will function as well as it did before the Huang affair scandals broke. This all comes as Nvidia is scheduled to report its third-quarter earnings next Tuesday. Last week’s turmoil won’t affect earnings this quarter or next. Nvidia has sales locked in well in advance, meaning its results won’t suffer for some time, if at all. Nvidia is expected to post earnings per share (EPS) of $2.47 and revenue of $109.2 billion. That’s a 90% increase in EPS and a 91% increase in revenue compared to the same period last year. 162.47 -3.73 (-2.24%) At 2:14:49 pm EST. Open market. Kress will have to acknowledge Huang’s departure and the company’s plans moving forward during the call. And analysts will have many questions. Several analysts have already lowered or reduced their price targets for Nvidia stock. Bernstein analyst Stacy Rasgon, who lowered her price target to $200 from $400 and downgraded her rating from Outperform to Market Perform, wrote in a note to investors that Kress’ appointment is a positive for the company. “We see considerable uncertainty around the news flow that is likely to come, as well as the ability of any new CEO to truly fill Jensen’s shoes, given the way he managed the direction of the business and its relationships with customers, suppliers, employees and the broader industry ecosystem,” Rasgon wrote in a note to investors. Baird Equity Research analyst Tristan Gerra said Huang’s resignation turns the page for Nvidia, but that the episode has not yet bottomed out. “Headwinds include potential incremental senior management departures, H200 half-year amortization charges, potential risk channel revenue adjustments, potential litigation. [and] fines, uncertainties even [a] “A new CEO is announced along with the risk of a loss of market share in 2029, as clients make contingency plans around a major senior management transition and look beyond the current product roadmap, along with greater clarity on the next CEO’s views regarding client financings,” Gerra wrote in a note to investors on Thursday. Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X on @DanielHowley or contact Signal or Telegram.
