Bernstein: Jensen Huang controversy may increase Nvidia's regulatory risks, but maintains its $400 price target.

BlockBeats news, November 9 - Bernstein stated that the recent allegations related to personal relationships faced by NVIDIA CEO Jensen Huang, while unlikely to directly affect the company's AI chip demand, may increase regulatory and political pressure. This incident could at best severely distract management's attention, and at worst provide grounds for bipartisan U.S. lawmakers to strengthen scrutiny of NVIDIA.

Additionally, the institution warned that NVIDIA faces "key person risk." Jensen Huang has long dominated the company's strategy and major operational decisions, reportedly having about 60 direct reports, and the company's management system is highly dependent on his personal leadership. Should Huang be unable to continue performing his duties, it remains unclear who could succeed him. Despite these risks, Bernstein maintains NVIDIA's "outperform" rating and $400 price target.