Nasdaq Turns Higher as Nvidia Narrows Losses From 14% to 4.2%
Key Facts
Nvidia shares fell 14% at the opening bell on Thursday, November 12, then narrowed their losses to 4.2% by midmorning, as the Nasdaq turned higher, according to The Associated Press. The move came on a day of turmoil for the company’s stock following Jensen Huang’s resignation as chairman, chief executive and a board member. Nvidia appointed Chief Financial Officer Colette Kress interim chief executive as it searches for a permanent successor to Huang. In a later snapshot at 12:46 p.m. Eastern time, the Nasdaq Composite was up 0.2% after erasing an early decline of 1.6%. The S&P 500 also rose 0.2%, according to The Associated Press.
Nasdaq 100 futures were down 0.6% before the U.S. market opened, while Nvidia shares fell 13% in premarket trading, according to Reuters. The Associated Press report put the stock’s opening decline at 14%, before tracking a narrowing of the loss to 4.2% by midmorning. These figures reflect different stages of the November 12 session, not a fixed price or percentage for the entire day. By contrast, AMD shares rose 1.7% and Broadcom shares gained 0.8% in Thursday trading, according to Reuters. The report linked the rivals’ gains to investor expectations that turmoil at Nvidia could create opportunities for other companies producing AI chips and competing with it.
Nvidia’s board appointed Harvey C. Jones as the company’s first chairman, according to The Associated Press. The appointment coincides with Kress taking over as interim chief executive, while the board considers candidates for the permanent role from inside and outside the company. The company said its board would consider candidates from both groups, and that it had no succession plan in place, according to the agency. The arrangement puts interim leadership responsibilities and the search for a permanent successor at the center of the company’s next phase. Huang’s departure also raises the stakes of the board’s decisions on the company’s leadership and strategy, as markets assess the impact of the turmoil on the AI sector.
Reuters linked investor concerns to Nvidia’s future financing of data center companies, a factor that could affect the broader momentum of AI investment. The agency quoted a portfolio manager as saying: "If Nvidia, under different leadership, pulls back from its data center financing strategy, the AI boom itself will lose momentum." Reuters also examined potential implications of Huang’s departure for U.S. chip export policy and the broader AI ecosystem. In that context, the agency pointed to Huang’s efforts to preserve access to China and his close ties with President Donald Trump. Intraday share moves do not determine how these policies or data center financing will change, but they put those issues among the matters investors are following after the leadership change.
Nvidia shares had lost about 27% of their value from the record level set the previous month through Wednesday, November 11, amid concerns about whether Huang would remain chief executive, according to The Associated Press. Reuters also said the company’s market capitalization had fallen by about 300 billion dollars since its board announced an investigation on Sunday. On November 11, EL7 data showed the Nasdaq 100 closing at 28,374.25 points and Nvidia shares closing at 173.73 dollars. On valuation, the stock traded at about 12 times estimated earnings for the following twelve months, its lowest multiple since November 2012, according to Reuters. These indicators provide background to the pressure preceding Thursday’s session, while the stock’s movement that day remained volatile between a sharp opening decline and later losses narrowing.
Among the upcoming dates cited by The Associated Press was Nvidia’s earnings announcement on the Tuesday following the November 12 session. The company is also scheduled to hold an employee meeting on November 18 at 9 a.m. Pacific time, according to a memo from Kress cited by Reuters. Kress wrote in the memo that the board and executive team recognized that the period had been exceptionally difficult. The choice of a permanent chief executive from inside or outside Nvidia will remain with the board, according to the company’s announcement. Investors are watching the company’s results and the new leadership’s next steps amid the shifts in Nvidia and its rivals’ shares during Thursday’s session.