Huang’s resignation sends Nvidia shares down 14% at the open, weighs on Nasdaq
Key Facts
Jensen Huang announced his resignation as Nvidia’s chief executive, a leadership shift that sent the company’s shares down 14% at the opening of trading on Thursday, November 12, 2026, and coincided with a 1.5% decline in the Nasdaq index, according to the Associated Press. The resignation came as investors watch the future of a company that has become a central player in the artificial intelligence boom. CFO Colette Kress took over as interim chief executive, while the board appointed Harvey C. Jones as the company’s first chairman. The moves put leadership and strategy at the forefront of investor questions about the company. Nvidia shares closed at $173.73 in the November 11 session, according to EL7 data.
Kress takes the interim post after many years in financial management; she became CFO in 2013 and also served as executive vice president. She said she was committed to building on the foundation Huang laid over 33 years, underscoring the challenge facing the new leadership team in maintaining the company’s trajectory. Kress said she was "committed to building on the exceptional foundation Jensen created over 33 years." Her interim appointment gives the company an executive leader from within its existing team, while Jones takes over as board chairman. The report did not specify when the interim arrangements would end or when a permanent successor to Huang would be announced.
The resignation announcement coincided with broader turbulence in technology and artificial intelligence stocks. In Asia, Alibaba and Tencent shares fell 6.7% and 2.6%, respectively, amid concerns that Washington could restrict access to offshore data centers using advanced processors, according to Reuters. Nasdaq 100 futures also fell about 1% in Asian trading, after Nvidia shares dropped 8% in extended trading on November 11. The moves reflect concern spreading to companies and products tied to AI infrastructure, rather than Nvidia shares alone. Reuters describes the stock as the standout of the AI revolution, noting that it has risen about 900% in the four years since ChatGPT’s launch.
The leadership change comes amid reports of personal and security pressures surrounding Huang. The Associated Press linked the leadership turmoil to media reports about Huang’s relationship with a Chinese businesswoman said to have spied for Beijing, and allegations of another relationship with an Nvidia employee who reported to him. The company said it had no reason to believe national security or its secrets had been compromised, and that its investigation would examine available information. On November 8, the board announced an independent investigation into reports that Huang had been targeted by a foreign intelligence service, saying it did not believe company secrets or national security had been harmed. Days before the resignation, the board expressed confidence in Huang and the leadership team, saying it would provide updates as appropriate.
Investors’ stakes extend beyond who will lead the company to the new management’s ability to continue executing its expansion and spending plans. Reuters reported that Nvidia listed financial commitments of $164.5 billion in its latest earnings report, including a commitment capped at $105 billion for an OpenAI data center in Ohio, and guarantees for leases, energy and other costs exceeding $50 billion. Ahead of the next earnings report, Reuters said investors will focus on leadership and strategy, and on whether sales expectations set under Huang will remain in place under his potential successor. These commitments heighten the importance of clarity on executive direction as markets assess the sustainability of spending tied to AI infrastructure. The earnings report is due next week, according to Reuters.
On U.S. economic data, initial jobless claims rose to 200,000 in the week preceding the November 12 release, compared with a revised reading of 191,000 in the prior week, exceeding economists’ expectation of 195,000. The four-week average remained at 195,250, according to the Associated Press. Claims came in at 200,000 or below for the ninth consecutive week, and had not exceeded 230,000 in any week since the start of the year through the report date. Looking ahead to upcoming data, investors were awaiting the producer price index on Friday, whose release could help shape inflation expectations, according to Reuters. Yields on 10-year U.S. Treasury notes also returned to 5% on Thursday, as the dollar rose to its highest level since the previous April, Reuters reported.