Nvidia (NVDA) shares plunged more than 10% to around $156 in premarket trading on Thursday, November 12, following the sudden resignation of CEO and co-founder Jensen Huang, marking a historic leadership change for the AI chip giant. The selloff threatens to erase hundreds of billions of dollars from Nvidia’s market capitalization, extending a sharp decline that has already wiped out roughly $600 billion in market value over the past week.
The stock closed Wednesday at $173.73 before falling sharply as investors reacted to reports about Huang’s future. According to Reuters, his departure has created fresh uncertainty around one of the world’s most valuable technology companies.
Jensen Huang Steps Down After 33 Years at Nvidia
Huang’s resignation ends an extraordinary 33-year run leading Nvidia, which he co-founded in 1993 and transformed from a graphics processor manufacturer into the dominant supplier of artificial intelligence computing hardware.
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The company appointed longtime Chief Financial Officer Colette Kress as interim CEO while its board searches for a permanent replacement. Harvey Jones has also been appointed Nvidia’s first chairman.
The leadership change follows reports of two extramarital relationships involving Huang, including one with a businesswoman suspected by US authorities of having connections to Chinese intelligence.
Nvidia’s board previously announced an independent investigation into possible national security concerns, although the company said it had no reason to believe sensitive information had been compromised.
Nvidia’s Historic Selloff Wipes Out Hundreds of Billions
The latest decline adds to an extraordinary week for Nvidia shareholders, with the company’s valuation falling dramatically as investors reassess the risks surrounding its leadership.
As previously reported, Nvidia shares had already fallen approximately 23% from their November 3 closing price during Wednesday’s extended trading.
At a share price of $156, Nvidia would have lost approximately 24.5% of its value since November 3, representing a decline of more than $1 trillion in market capitalization based on its earlier valuation.
This makes the selloff particularly significant because Nvidia sits at the center of global AI infrastructure spending, supplying GPUs and accelerated computing platforms to major cloud providers and technology companies.
What Happens to Nvidia Stock Next?
Investors now face uncertainty over how Nvidia will maintain its technological leadership without Huang, whose decisions helped establish the company’s CUDA software ecosystem, data center business and dominance in AI training and inference.
Although Nvidia retains its extensive product portfolio and engineering teams, leadership changes could affect strategic decisions, customer relationships and the execution of future chip architectures.
The company’s next major test arrives on November 17, when Nvidia is scheduled to report its third-quarter fiscal 2027 earnings.
Those results, alongside updates on its permanent CEO search, will provide investors with a clearer picture of whether Nvidia can stabilize after one of the most consequential leadership transitions in technology history.
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