Wedbush Reaffirms Outperform on NVIDIA, $345 Price Target

Wedbush analyst Matt Bryson reiterated an Outperform rating and $345 price target on NVIDIA (NASDAQ: NVDA).

“Yesterday after the close, the NY Times reported that embattled Nvidia CEO Jensen Huang likely had a second relationship with a direct report per accounts from five Nvidia employees.

In addition, the WSJ writes that the Nvidia board is preparing to oust its CEO following this revelation with Bloomberg suggesting the company has hired an executive search firm to identify potential CEO candidates. Net, while we wouldn’t view Jensen’s ouster as fait accompli, this resolution appears the most likely end game at this point.

Our view is that while an executive transition would necessarily increase uncertainty for NVDA, both the current valuation and near-term sales/demand setup moderate risk for the company and provide some leeway for NVDA to find its way and that at ~10X FY’28 EPS, almost any level of uncertainty is already baked into the stock.

Finally, we see AMD and perhaps Cerebras as potential beneficiaries if NVDA stumbles given the need (in our view) for strong 3rd party based supply of accelerator product.”

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