Nvidia Shares Fall 9.7% After Huang Resigns as U.S. Stock Indexes Decline
Key Facts
Nvidia shares fell 9.7% on Thursday, November 12, following the resignation of CEO Jensen Huang, according to the Associated Press, putting the company under pressure as its leadership changes. The decline came in a session in which the S&P 500 and Nasdaq Composite fell, while the Dow Jones decline was limited. Before the market opened, the stock was down more than 7% to $160.85, according to a separate report by the agency. That price represents a 34% decline from the record high the stock reached just over a month earlier. Nvidia closed at $173.73 on November 11, according to EL7 data.
In trading reported by the Associated Press, the S&P 500 fell 0.6% and the Nasdaq Composite declined 0.9% at 9:35 a.m. Eastern time. The Dow Jones was down 15 points, or less than 0.1%, at the same time. Nvidia’s weakness thus coincided with declines in the indexes, while some chip stocks moved in the opposite direction. Broadcom rose 5.2%, and shares of Advanced Micro Devices gained 2%, the agency reported. The moves showed divergent performance among companies in the sector during the same session, with Nvidia shares falling more sharply than the U.S. indexes.
The Associated Press reported that Nvidia’s board appointed Colette Kress interim CEO following Huang’s resignation. Kress currently serves as the company’s executive vice president and chief financial officer, according to the agency. The decision puts an executive from within the company in charge for the period following the resignation. Huang’s departure raised questions about the continuity of his leadership and the company’s ability to move forward without him, according to the agency’s background on the stock’s decline. Dan Ives, senior managing partner at Yorkville Ives & Co., wrote that what seemed impossible a week ago had become reality, and that he did not see Huang as the company’s CEO at this stage. Ives added that the stock and the company should be valued without Huang as CEO.
Thursday’s decline followed a cumulative 27% drop in Nvidia’s share price from its record high through Wednesday, November 11, according to the Associated Press. The agency linked the decline to investor concerns about whether Huang would remain in his position and how the company would handle a future without him. Thursday’s drop then followed the resignation, bringing the decline from the high to 34% in premarket trading, according to the agency’s report. These figures place the session’s move within a period of pressure that began before the resignation was announced and intensified afterward. By contrast, Broadcom and AMD shares rose in the trading covered by the report, highlighting diverging moves within the chip sector.
Following the leadership change, investors are turning their attention to the company’s next financial results announcement. Nvidia’s earnings call transcript said the company had planned to hold a call to discuss results for the third quarter of its fiscal 2027 on November 17, 2026. The date comes after Huang’s resignation and Kress’s appointment as interim CEO. It is a near-term opportunity for the company to present its quarterly results amid the leadership change. The figures on the stock and indexes relate to Thursday’s trading and the preceding period specified in Associated Press reports and EL7 data.