Nvidia Shares Fall 7.6% After Jensen Huang Resigns as CEO
Key Facts
Nvidia announced on November 12, 2026, that Jensen Huang had resigned as the company’s chairman, chief executive and a member of the board, effective immediately. The company said Chief Financial Officer Colette Kress would serve as interim chief executive while retaining her finance role, as the board begins its search for a permanent successor. The board said it would consider candidates from inside and outside the company. The leadership change came as Nvidia shares fell 7.6% on Thursday, according to Reuters, as investors assessed the implications of Huang’s departure. Reuters also reported that the Nasdaq and S&P 500 fell during the session amid turmoil in AI-related trading.
Kress’s appointment puts her in charge of the company on an interim basis until the board selects a permanent chief executive, and Nvidia said the search would include internal and external candidates. In a parallel move, the board appointed Harvey C. Jones as the company’s first chairman. Nvidia said it expects its operations, customer commitments and product roadmap to continue without disruption. That pledge puts continuity in operations and products at the center of the company’s message following the sudden leadership change. The company did not specify when it would choose a permanent chief executive.
Pressure extended to U.S. market indexes, with the Dow Jones, S&P 500 and Nasdaq ending Thursday’s session lower, according to Reuters. The S&P 500 fell 0.35% to 7,592.40 points, while the Nasdaq Composite declined 0.39% to 25,366.09 points. Reuters linked the market’s decline to investor concerns about the impact of Huang’s departure on AI-related bets, as well as rising oil prices, which weighed on investors. Some competitors’ shares rose, however: AMD gained 5.9% and Broadcom rose 5.5% on Thursday. The moves showed divergence within the chip sector in the same session, with Nvidia shares falling and rivals gaining.
Nvidia shares had fallen more than 12% in early trading, putting the company on track to lose about $500 billion in market value, according to a Reuters report. The Associated Press said the stock initially fell 14% after Huang’s resignation before quickly paring its losses, while shares of other AI chip companies rose. The volatility followed weeks of pressure on the stock, amid reports of a personal relationship and questions about whether an AI bubble was forming, according to the Associated Press. An investor quoted by Reuters described the risks as execution-related, not a matter of an imminent loss of the technology roadmap. He said: "The risk is not that Nvidia suddenly loses its technology product roadmap; that roadmap is fairly clear for the years ahead. The risk is execution."
The leadership transition’s implications extend beyond the company’s management and shares to U.S. trade policy. Reuters said Huang’s departure could affect chip export policy, given his support for maintaining access to the Chinese market and his ties to U.S. President Donald Trump. In a related internal development, Reuters reported that Kress told employees the company would hold a meeting on November 18 at 9 a.m. Pacific Time. The agency also said Kress described the period as "exceptionally difficult." Nvidia is scheduled to report results for the third quarter of its 2027 fiscal year on November 17 at about 1:20 p.m. Pacific Time, as planned, followed by a conference call at 2 p.m. The results date gives the interim leadership its first announced near-term opportunity to update investors on the company’s performance and plans.
After his resignation, members of the U.S. Congress continued seeking a briefing from Huang, according to the Associated Press, with questions about his communications with a Chinese businesswoman and Nvidia’s security protocols. The issue adds a political dimension to the leadership transition as markets track the company’s performance and position in the AI trade. An analyst quoted by Reuters said the question of whether the stock had bottomed remained open: "Are we seeing the bottom today? And will more bad news emerge to push the stock lower again?" The uncertainty coincided with declines in the company’s shares and major U.S. indexes on Thursday, despite gains in some rivals’ shares. Markets are awaiting the financial results announcement on November 17 as the board continues its search for a permanent chief executive.