Nvidia Shares Fall 7% to $161.37 Before the Open as Concerns Around Huang Mount

Key Facts

Nvidia shares fell 7% to $161.37 before the opening bell on Thursday, November 12, according to the Associated Press, putting them 34% below the record high reached just over a month earlier. The drop came after reports that the company’s board met late Wednesday to discuss the position of Chief Executive Jensen Huang. The company’s shares had risen 2.9% during Wednesday’s session before falling 8.6% in after-hours trading as the reports spread, according to the AP. The moves put shares of the company, whose market value exceeds $4 trillion, at the center of volatility in AI stocks. Pressure in premarket trading extended to other chipmakers and computing infrastructure companies.

U.S. futures were mixed at 5:32 a.m. Eastern time, with Dow mini futures up 0.12%, while S&P 500 mini futures fell 0.31% and Nasdaq 100 futures dropped 0.64%, according to a Reuters report published by Investing.com. Intel, Marvell Technology and Micron shares fell between 1.9% and 2.8% before the open, while CoreWeave shares dropped about 6%. The AP reported that CoreWeave shares fell nearly 9%, and that Nvidia owns about a 13% stake in the data-center and cloud-computing company. The AP also noted that AMD and Broadcom shares rose sharply during the volatility in Nvidia stock. The divergence in these moves shows that pressure did not affect all companies in the sector to the same degree.

Concerns surrounding the stock extend beyond leadership, as investors watch for a possible slowdown in the AI sector and question whether future profits will justify massive investments in the technology, according to the AP. The Nasdaq Composite fell 7% in the month through November 12, the agency reported. A Swissquote analyst, as quoted by the AP, said, "There is no reliable way to determine an exact revenue loss if Huang leaves." She added that Nvidia’s ecosystem advantages include computing, software and networking, elements that extend beyond the role of its chief executive. These concerns put the stock’s performance in the context of broader questions about returns on AI spending, alongside uncertainty over the company’s leadership.

In a separate move in premarket trading, Eli Lilly shares rose 2.8% after China approved the company’s weight-loss pill orforglipron, according to Reuters, citing China’s drug regulator. The report said the drug will compete with weekly GLP-1 injections offered by Novo Nordisk, Pfizer and Innovent Biologics. Investing.com cited China’s National Health Commission as estimating that the share of the population that is overweight or obese could exceed 65% by 2030. The approval gives the company a new regulatory decision in the Chinese market, while Nvidia’s move was linked to reports of a board meeting. Lilly’s rise came amid declines in chip stocks and Nasdaq 100 futures in the same early trading session.

Nvidia’s next quarterly results are due on November 17, when the company plans to discuss results for the third quarter of its fiscal 2027, according to a date announced on its previous earnings call. The date follows a session in which the stock fell 7% before the open, after dropping 8.6% after the previous day’s close. Investors will follow the report as questions about the company’s leadership intersect with concerns about a slowdown in the AI sector and the merits of its investments. Moves in chip and infrastructure companies also remain a nearby market indicator of how far volatility linked to the stock may spread. The earnings date is the next scheduled milestone in the company’s disclosures.