Nvidia Shares Fall 12.7% in Week of Huang’s Resignation, Despite Gains in U.S. Indexes
Key Facts
Nvidia shares lost 12.7% in the week ended Nov. 13, a decline that coincided with Jensen Huang’s departure from his position, according to Axios. The company’s board had accepted Huang’s resignation as chairman, chief executive and board member effective Nov. 11, according to a filing the company submitted to the U.S. Securities and Exchange Commission. The weekly decline coincided with a leadership change at a company that has become a central focus of the surge in demand for AI computing. In Friday’s session alone, the stock fell 2%, according to Reuters. Nvidia’s performance diverged from the broader market’s course during the week, as all three major U.S. indexes ended the period with gains.
The board announced the appointment of Chief Financial Officer Colette Kress as interim chief executive while it searches for a permanent CEO, according to Reuters. The company’s filing says she will continue in her finance role alongside the interim position, having served as executive vice president and CFO since 2013. The board also appointed Harvey C. Jones as its chairman on Nov. 11; Jones had been a board member since 1993, according to the filing. Under the arrangement, Kress takes on interim executive leadership while Jones chairs the board during the transition. The changes come as investors track the company’s ability to maintain its operational course after the departure of its founder and CEO.
Despite Nvidia’s weekly loss, the S&P 500 rose 2.5% in the period ended Nov. 13, the Dow Jones gained 2.1% and the Nasdaq rose 2.3%, according to the Associated Press. The Nasdaq and S&P 500 fell in Friday’s session, while all three major U.S. indexes ended the week higher, according to Reuters. Chuck Carlson, an investment services director, said traders "probably weren’t excited about holding positions over the weekend," adding that attention would turn to Nvidia the following week. The stock’s Friday-session decline indicates that pressure persisted through the end of the week, despite the indexes’ weekly gains. The move puts the company’s upcoming results at the center of investors’ focus in the days ahead.
The sharp rise in demand for AI-related computing preceded a sevenfold increase in Nvidia shares through early October 2026, when the company’s market value at one point approached $6 trillion, according to Reuters. As the stock enters a period of steep weekly declines, leadership continuity takes on importance for investors following the company after that rally. Reuters noted that the stock was trading at 12 times expected earnings as of Nov. 12, its lowest valuation since 2012. Portfolio manager Michael Feldman said "the risk is execution," describing Huang as "the key leader of a highly complex system," while saying the technology road map was largely clear for the coming years. These comments refocus the market on management’s ability to execute its plans during the leadership transition.
Attention now turns to the fiscal 2027 third-quarter earnings call, which Nvidia scheduled for Nov. 17 at 2 p.m. Pacific time to discuss results for the quarter ended Oct. 25, according to an investor relations announcement. A written commentary from Colette Kress is due before the call and will be released immediately after the results announcement, expected at about 1:20 p.m. Pacific time. The company said the call will include a question-and-answer session limited to questions from financial analysts and institutional investors. The event gives investors an early opportunity to follow the company’s guidance and explanation of its results under interim leadership. In a parallel development, the chairman of the U.S. Senate Banking Committee invited Huang and Commerce Secretary Howard Lutnick to testify before the committee the following month, according to Reuters.