Citi has lowered its price target for Nvidia for the second time in three days. But it recommends buying the stock.

On November 12, Citi cut its price target for shares of AI chipmaker Nvidia by 21%, from $285 to $225, but maintained its “buy” rating, according to Bloomberg. In premarket trading on November 12, Nvidia shares were down nearly 7%, falling below $162. Citi’s revised target price is 39% above that level.

A potential leadership change at Nvidia is weighing on the company's stock "given [CEO] Jensen Huang's key role in strategy, product vision, customer relations, and investor confidence," according to Citi analysts.

The bank has revised its price target for the second time in three days: on November 10, it lowered the target from $315 to $285. Over the past two days, other major banks have also become less enthusiastic about Nvidia shares. Baird and Bernstein withdrew their “buy” recommendations and lowered their target price to $200, while Morgan Stanley removed the chipmaker’s stock from its list of top picks.

Nvidia is preparing to remove its founder and CEO, Jensen Huang, following reports of two extramarital affairs, sources told The Wall Street Journal. The board of directors has tasked an outside executive search firm with finding a replacement for him, Bloomberg reported, citing a source.

“We believe that CFO Colette Kress could serve as interim CEO while the board evaluates external candidates,” Citi said (as quoted by Bloomberg). Some members of Nvidia’s board of directors would also like to see Kress take over the position if Huang were to step down, according to a source speaking to Semafor.

As of 4:00 p.m., participants on the Polymarket event betting platform estimated the probability that Huang would retain his position at 29%. The odds of Ian Buck, the company’s vice president of high-performance computing, taking the helm at Nvidia stood at 25%, while those for Kress were 22.9% and for Arm CEO René Haas were 6.6%.

This article was AI-translated and verified by a human editor