Due to the scandal that led to the resignation of CEO and co-founder Jensen Huang, analysts are becoming increasingly pessimistic about NVIDIA.

Several Wall Street brokers have downgraded the rating of this AI infrastructure concept stock, citing management uncertainty that NVIDIA is facing following the unfolding scandal.

Bernstein analyst Stacey Raskin wrote in a research report for clients on Thursday: "We do not recommend entering the market in large volumes at this point. There will undoubtedly be more revelations to come. There is a saying: if you see two ants in the kitchen, the total number of ants in the kitchen is certainly more than two... There will be both internal issues and news related to the business, as well as new government investigations, and so on."

KeyBanc Analyst John Wen also expressed a similar view in his research report.

He wrote, "We believe that Jensen Huang's departure means that the company's strategic risks, organizational risks, and implementation risks have significantly increased. As a result, the stock should enjoy a higher risk premium and a lower valuation multiple. Although we judge that the core fundamentals will remain solid in the short term, it will be very difficult for NVIDIA to find a successor with the same leadership and strategic vision."