{"id":915177,"date":"2026-11-12T20:52:11","date_gmt":"2026-11-12T20:52:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/915177\/"},"modified":"2026-11-12T20:52:11","modified_gmt":"2026-11-12T20:52:11","slug":"nvidia-stock-plunges-after-jensen-huang-resigns-as-ceo","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/915177\/","title":{"rendered":"Nvidia Stock Plunges After Jensen Huang Resigns as CEO"},"content":{"rendered":"

Nvidia\u2019s shares plummeted Thursday, sending tremors through global markets, as the company\u2019s chief executive, Jensen Huang<\/a>, stepped down from his role.<\/p>\n

Shares in Nvidia dropped as much as 14 percent when markets opened for trading on Thursday, extending a decline that has wiped out more than $1 trillion from the company\u2019s market value this month alone. The stock began to reverse most of its losses by late morning.<\/p>\n

The broader market rose slightly, too, as investors began to conclude that the fallout of Mr. Jensen\u2019s departure would not fundamentally undermine the artificial intelligence trade. Yields on the 10-year U.S. Treasury rose above 5 percent on Thursday for the first time in weeks. Yields go up when Treasury prices go down.<\/p>\n

Nvidia has emerged as central to the A.I. economy because its chips \u2014 or graphic processing units \u2014 help train and power models across the industry. It has also become a central bank of sorts for several A.I. companies, because its finances are deeply intertwined with those of everyone from frontier A.I. labs to neoclouds, which rent out computing power.<\/p>\n

\u201cThis is an Nvidia problem before it is an A.I. problem,\u201d said Mark Malek, chief investment officer at Siebert Financial. But he added that Nvidia\u2019s woes could trickle through to other companies.<\/p>\n

\u201cWhere I would be careful is with the smaller A.I. cloud companies that leaned on Nvidia\u2019s checkbook,\u201d he said. \u201cIf the new regime gets more conservative about financing its own customers, that is where it shows up first.\u201d<\/p>\n

The company\u2019s board named Colette Kress, Nvidia\u2019s chief financial officer, as its interim chief executive.<\/p>\n

With the change in Nvidia\u2019s leadership, investors face uncertainty about one of the poster children of the A.I. trade and how its problems could affect the broader economy.<\/p>\n

Among the hardest hit stocks on Thursday were cloud computing providers that have strategic partnerships with Nvidia. Coreweave sank nearly 8 percent, and Nebius plunged nearly 17 percent. Nvidia\u2019s rivals, on the other hand, ticked higher. AMD rose nearly 3 percent and Broadcom gained more than 4 percent on Thursday.<\/p>\n

The broader U.S. market, initially weighed down by Nvidia\u2019s troubles, inched higher on Thursday afternoon. The S&P 500 was up 0.2 percent and tech-heavy Nasdaq up 0.1 percent.<\/p>\n

Nvidia\u2019s woes reverberated through global markets as well. Taiwan\u2019s TSMC, which produces chips designed by Nvidia, fell nearly 2 percent. But South Korea\u2019s Samsung, which competes with Nvidia on some business lines, gained 1 percent. Shares in Europe\u2019s largest tech company, ASML of the Netherlands, fell less than 1 percent.<\/p>\n

Mr. Huang, who co-founded Nvidia in 1993, has become one of the most influential forces in the A.I. boom, which has helped to drive U.S. stock markets to new highs in recent years.<\/p>\n

Nvidia\u2019s board deliberations came after revelations that Mr. Huang had an affair<\/a> with an executive who reports to him as well as with a woman whom U.S. intelligence has identified as a Chinese spy.<\/p>\n

Some market analysts covering Nvidia have begun to downgrade their forecasts for its stock. Though the chipmaker is expected to remain a critical part of the A.I. build-out, some noted rising concerns about its governance and lack of a clear succession plan. They argued that these revelations have fundamentally changed Mr. Huang\u2019s position in the tech world, and it was unclear what the implications of his departure from Nvidia could be.<\/p>\n

Analysts at Bernstein downgraded Nvidia and sharply lowered their target for its share price. \u201cOur gut tells us that we probably haven\u2019t yet fully probed the depths of what might be found here,\u201d they wrote. \u201cWe\u2019ve had enough, and prefer to watch from the sidelines.\u201d<\/p>\n

Analysts at RBC Capital Markets also slashed their forecast for the stock, citing the lack of a formal succession plan for chief executive. \u201cWhether any individual can replicate Huang\u2019s singular combination of technical vision, ecosystem-building acumen and ability to serve as the global face of the A.I. revolution remains an open question,\u201d they noted.<\/p>\n

Nvidia\u2019s stock is down about a third from its peak at the start of October, putting the company deep in a bear market, defined as a drop of 20 percent or more from a recent high.<\/p>\n

The chipmaker retains a central role in the A.I. revolution, said Ken Mahoney, chief executive of Mahoney Asset Management, but he added that there could be more \u201crumblings\u201d under the surface for investors looking to buy the dip.<\/p>\n

\u201cUltimately, a lot depends on your investment time horizon,\u201d he said. \u201cShort-term traders face tremendous uncertainty, while longer-term investors may find opportunity if the company\u2019s underlying fundamentals remain intact.\u201d<\/p>\n

Nvidia became the world\u2019s largest public company by market value for the first time in 2024<\/a>, exerting an outsize influence over major indexes like the Nasdaq Composite and the S&P 500. Analysts still expect Nvidia to make a profit of well over $200 billion this year, with its chips in high demand as tech companies rush to build giant A.I. data centers<\/a>. It reports its quarterly earnings next week.<\/p>\n

During last week\u2019s market turmoil, Nvidia fell below Apple as the world\u2019s biggest public company.<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia\u2019s shares plummeted Thursday, sending tremors through global markets, as the company\u2019s chief executive, Jensen Huang, stepped down…\n","protected":false},"author":2,"featured_media":915178,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[177084,261282,181,28,7510,126432,324638,382213,94976,11158],"class_list":["post-915177","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-adultery","tag-appointments-and-executive-changes","tag-artificial-intelligence","tag-business","tag-computer-chips","tag-huang","tag-industrial-espionage","tag-jen-hsun","tag-nvidia-corporation","tag-stocks-and-bonds"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/915177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=915177"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/915177\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/915178"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=915177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=915177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=915177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}