Nvidia Falls 2% Friday, Down 12.75% for the Week Ahead of Earnings

Nvidia (NVDA) closed at $162.85 on Friday, down $3.34 or 2.01%, capping a 12.75% weekly loss as analysts downgraded the stock ahead of Tuesday's fiscal third-quarter report, the first under interim CEO Colette Kress.

HSBC cut Nvidia to Hold on Friday and lowered its price target to $170 from $365; analyst Frank Lee said investor confidence had been shaken, according to Yahoo Finance. Yahoo Finance counted at least ten Wall Street analysts who moved the stock from Buy to Hold since Jensen Huang's resignation on 12 November. Nvidia has not given a reason for the resignation and has published no findings.

The consensus, as cited by Yahoo Finance on 13 November, calls for earnings per share of $2.47 on revenue of $109.2 billion, both roughly 90% to 91% growth from a year earlier. Nvidia will release results at about 1:20 p.m. Pacific on Tuesday 17 November, with a call at 2:00 p.m. Pacific.

Not all analysts turned cautious: Wedbush's Matthew Bryson expects Nvidia to exceed its forecast and guide the fourth quarter above the Street, per Yahoo Finance. Cantor Fitzgerald's CJ Muse cut his target to $250 from $350 on Thursday but kept an Overweight rating, per CNBC. Stifel holds a $205 target with a Buy rating and Baird is at $200 with a Neutral rating.

Options traders expect a large move, though estimates diverge: Bloomberg options data imply about 6.7%, via Investing.com, while Benzinga measured about 9.6% at Thursday's close. The stock sits roughly 32% below its record close of $239.24 on 6 October. Kress retains the CFO title while the board searches for a permanent successor, according to Nvidia's 8-K filing.

Shares of Nvidia (NVDA) were down 2.01% in delayed trading at $162.85.