Nvidia Shares Fall 14% After Huang Resigns and Trump Suggests Tim Cook as Successor
Key Facts
U.S. President Donald Trump suggested that Tim Cook, Apple’s executive chairman, succeed Jensen Huang at Nvidia after Huang resigned on Thursday, but Axios reported that it was unclear how serious the suggestion was and that it may have been made jokingly. Nvidia announced the appointment of Colette Kress as interim CEO, beginning a transition at the company that leads the AI chip business. Trump made the suggestion in a post on Truth Social, describing Huang as a “legend” and writing: “A legend replaces a legend.” In early trading on Thursday, Nvidia shares fell more than 12%, according to Reuters, while the Associated Press reported that they had lost 14% at the opening bell, as the technology-heavy Nasdaq fell 1.5%. The moves showed a sharp reaction to news of the CEO’s departure, as the company also faced questions about security investigations and its succession plan.
The AP said the board would search for a permanent successor from inside and outside Nvidia, noting that the company had no succession plan. That puts Kress in an interim role while the board identifies candidates for the position, without making Trump’s suggestion an official company selection. Kress had served as chief financial officer since 2013, overseeing global financial operations before her interim appointment. The board also announced the appointment of Harvey C. Jones as Nvidia’s first chairman. Reuters reported that Huang would also leave the board and that his stake in the company is about 3.61%.
The resignation comes after Nvidia’s board said it had begun an independent investigation following reports that a foreign intelligence agency had targeted Huang. The board said it saw no reason to believe that national security or Nvidia’s secrets had been compromised. The AP reported that the company likewise said it saw no reason to believe there had been a breach, and that its investigation would examine the available information. The security review puts the leadership transition in a broader context than a management decision, as the company continues to examine claims that its founder was targeted. Reuters quoted a portfolio manager as saying the main risk may be execution, describing Huang as “the lead operator of an extraordinarily complex system.”
The stock closed at $173.73 on November 11, according to EL7 data, while Apple shares closed at $355.63 on the same day. These prices provide context for the session that followed, when the shares fell, and are not Thursday’s closing prices. Reuters reported that Nvidia’s early losses put it on track to shed about $500 billion in market value, putting pressure on the broader market. In Asian trading before the resignation was announced, Nvidia shares fell about 7% in U.S. premarket trading, while Alibaba dropped 6.7% and Tencent fell 2.6% in Hong Kong. Reuters linked those moves to concerns about U.S. restrictions on advanced overseas data centers, adding a chip policy factor to the pressure on the stock.
Attention is turning to Nvidia’s upcoming announcement of results for the third quarter of its 2027 fiscal year, which ended on October 25, 2026. The company scheduled its earnings call for November 17 at 2 p.m. Pacific time, or 5 p.m. Eastern time, to discuss the quarter’s performance. The AP had noted that the company was due to report results on the Tuesday following its report. The date comes as the board searches for a permanent successor and the company continues its investigation into information related to the alleged targeting. The earnings call will therefore bring together the expected financial disclosure and market questions about leadership continuity and the course of the investigation.