Nvidia Shares Fall After Huang’s Resignation Amid Leadership Turmoil and AI Sector Concerns
Key Facts
Nvidia shares fell in early trading on Thursday, November 12, after the company announced the resignation of founder and CEO Jensen Huang, adding pressure on AI stocks and refocusing investors on leadership continuity. Reuters said the stock fell 8.2% to its lowest level in more than 16 months, with its market value at risk of dropping below $4 trillion for the first time since July 2025. In another account, the Associated Press reported that the stock fell 14% at the start of trading before standing 5.3% lower at 10:30 a.m. Eastern time. The news agency said the stock quickly pared half its early loss and remained down 5.3% in its latest update. The moves show a sharp decline following the resignation announcement, without establishing a specific rebound from the session low.
The stock’s path in the previous session was different: it rose 2.9% in regular trading on Wednesday, November 11, then fell 8% after the close. The subsequent decline followed a report that the board was preparing to remove Huang, before the company announced his resignation the next day. Reuters attributed technology stocks’ gains on Wednesday to an upbeat report from CoreWeave that bolstered optimism about AI trading. CoreWeave shares also jumped more than 27% in that session, after the company’s results sparked a relief rally in sector stocks. On November 12, Nvidia-backed CoreWeave shares fell 6%, giving back some of their earlier gains.
On leadership arrangements, Reuters said CFO Colette Kress will serve as interim CEO while Nvidia searches for a permanent successor, considering candidates from inside and outside the company. Huang will leave the board, according to the report. The company appointed Harvey Jones, former CEO of Synopsys and a member of its board, as Nvidia’s first board chair. The company’s board announced on November 8 that it had begun an independent investigation following reports that Huang was targeted by a foreign intelligence agency. The board said it had no reason to believe there had been a breach of national security or company secrets.
Huang remains the company’s founder and a central figure, as well as its fourth-largest shareholder with a stake of about 3.61%, Reuters said. The Associated Press reported that the stock had fallen 27% from its record high set in the previous month through Wednesday, November 11. Over a longer period, the stock rose 1,722% in four years, compared with a gain of about 109% for the S&P 500 over the same period, according to the news agency. It also reported that the stock was down more than 30% from its record high through November 12, as concerns grew about inflated AI valuations and Huang’s continued presence at the company. Reuters, citing data compiled by LSEG, said the stock was trading at about 12 times forward 12-month earnings estimates, its lowest multiple since November 2012.
The next near-term milestone is Nvidia’s fiscal 2027 third-quarter results. The company said its results call will be held on November 17 at 2 p.m. Pacific time to discuss the quarter ended October 25, 2026. A Forrester research director, according to the Associated Press, said Nvidia’s rapid stabilization under new leadership would demonstrate the resilience of the AI infrastructure boom. She added that continued pressure on the stock or on financing relationships and commitments across the company’s ecosystem could reinforce signs of sector fragility. Succession arrangements remain in focus as Kress takes the role on an interim basis and the company searches for a permanent successor. The results call comes days after the leadership change, as sector stocks face volatility and growing valuation concerns.