Huang’s resignation rattles Nvidia shares; Nebius falls 18% despite revenue surge
Key Facts
Jensen Huang resigned as Nvidia’s chief executive and a member of its board on Thursday, a leadership change that shook the company’s shares and the chip sector, according to the Associated Press. Nvidia appointed Chief Financial Officer Colette Kress interim chief executive as the board searches for a permanent successor, according to Reuters. The stock fell 14% at the opening bell before paring losses to about 4% near midday, the Associated Press reported. Reuters said it was down about 5% in trading after an early decline that approached 12%. The resignation came amid coverage of reports about Huang’s ties to people who had faced security scrutiny, while the agency said it could not independently confirm one account of another relationship.
Nvidia had no succession plan in place for the possibility of Huang’s departure, according to the Associated Press, and the board will search for candidates from inside and outside the company. The board announced on November 8 that it had begun an independent investigation into reports that Huang was the target of a foreign intelligence effort, to be overseen by a committee of independent directors and an independent outside lawyer. “Huang’s departure adds uncertainty that extends beyond the company itself,” said Asa Hiken, a research analyst at eMarketer. Hiken linked it to broader concerns and speculation about an AI bubble. The concerns reflect the market’s sensitivity to leadership at Nvidia, whose share moves spilled over into chipmaker indexes in Thursday’s session.
Chip stocks had mixed performances during the session: Nvidia rival Advanced Micro Devices rose 7%, Broadcom gained 5.4%, while Intel was flat, according to Reuters. The Philadelphia Semiconductor Index fell 0.5% after gains of 17.2% over the previous four sessions. In the broader market, the Dow Jones rose 0.02%, while the S&P 500 lost 0.13% and the Nasdaq fell 0.27%. Retail investors bought about $111 million worth of Nvidia shares during the first half-hour of trading, the largest opening purchase recorded for the stock, according to Vanda Analytics data cited by Reuters. The moves showed continued demand for the stock alongside its sharp decline and the chip sector’s retreat.
At cloud computing company Nebius, revenue for the quarter ended September 30 surged to $980.8 million from $146.1 million in the same period of 2025, an annual increase of 571%, according to its results statement. Adjusted earnings before interest, taxes, depreciation and amortization turned positive at $465.8 million, after the company posted an adjusted loss of $5.2 million in the third quarter of 2025. Its net loss from continuing operations also narrowed to $37.5 million from $119.6 million a year earlier. But the strong figures failed to prevent the stock from falling on Thursday, dropping about 18% after the results and forecast, according to Reuters. Reuters had described it in premarket trading as slightly higher amid volatility before its direction changed during the session.
Nebius expects revenue of between $12 billion and $13 billion in 2027 and is also targeting pre-tax break-even by the end of that year, according to Reuters. The forecast puts the next phase of growth alongside the sharp shift in revenue and adjusted earnings recorded in the third quarter. In the energy market, crude prices rose after U.S. President Donald Trump wrote on social media that the United States did not need a deal with Iran, according to Reuters. The S&P 500 energy index rose about 2% during the session, alongside gains in oil. Geopolitical risks in the Middle East remained a source of investor caution, while the drop in oil during November up to that point had helped ease some concerns about price pressures.
Investors will turn their attention in the next session to the U.S. October producer price index, after a higher-than-expected consumer price index reading earlier in the week. The Bureau of Labor Statistics scheduled the release for Friday, November 13, at 08:30 a.m. local time. The release comes as markets track the effect of oil moves on price pressures alongside volatility in technology shares. The selection of a permanent successor to Huang will also remain on Nvidia’s board agenda, with the board saying it would search for a replacement. Nebius’ results and 2027 forecast remain in focus for traders after the stock’s sharp post-announcement decline.