On November 12, 2026, Jensen Huang, the co-founder of Nvidia, announced his immediate resignation from his position as Chief Executive Officer and as a member of the board of directors. Following this shocking news, Nvidia’s stock price plummeted by more than 10% during the day’s trading and later managed to recover some of the losses.
Four years ago, Nvidia’s stock was around $11. Under Huang’s leadership, the company transformed into a colossal force in artificial intelligence, reaching a stock price peak of $239 on October 6, 2026.
Prior to Huang’s resignation, media reports surfaced on October 29 revealing an extramarital affair between him and Alice Huang, an executive at Singapore-based chip company Megaspeed. Alice Huang is also believed to have close ties to the Chinese Communist regime, raising suspicions that she may have been facilitating ways for the regime to bypass U.S. chip export restrictions.
The day following the revelation, Nvidia’s stock closed down 4.22%. Over the next nine trading days, the stock experienced fluctuations, declining on six occasions and rising on three. The greatest drop was recorded on November 5, when the stock plunged by 9.26%.
On November 12, after Huang’s resignation was announced, Nvidia’s stock dipped below $150 shortly after the market opened, marking a staggering decline of over 37% from its peak on October 6, which equates to a reduction in market capitalization of approximately $200 billion.
Interestingly, on November 11, two weeks after the extramarital affair came to light, Nvidia’s stock saw a slight increase of 2.87% during market close.
On the same day of Huang’s resignation, a report by the investment analysis platform TradingKey noted that Nvidia’s stock opened with a sharp drop of 14%, hitting a low of $148.80, which was the lowest level since late June 2025, although the decline soon began to diminish.
By the closing bell on November 12, Nvidia’s stock settled at $166.19, concluding the day down 4.34%. This departure of Huang has amplified existing concerns in the market regarding the stability of Nvidia’s leadership. Investors are now compelled to reassess the capability of the succession team to maintain the company’s technological strategies, client relationships, and operational performance.
In response to Huang’s resignation, the Nvidia board of directors has appointed Colette Kress as the interim CEO, assuring stakeholders that the company’s operations, commitments to clients, and product development plans would not be disrupted.
However, Wall Street analysts have begun to downgrade their valuation expectations for Nvidia. Following November 10, Citigroup first reduced Nvidia’s target price from $315 to $285, and then further down to $225. Similarly, the Royal Bank of Canada lowered its target price from $330 to $230.
Bernstein subsequently downgraded its rating for Nvidia from “Outperform” to “Market Perform,” slashing its target price from $400 to $200. Baird similarly downgraded its rating to “Neutral,” with a target price adjustment from $500 to $200. Other financial institutions, including Bank of America, Stifel, Mizuho, and Wells Fargo, have also revised their target prices for Nvidia downward.
Notably, hedge fund manager Michael Burry expressed his belief that Nvidia’s forthcoming financial reports will still exhibit “outstanding” performance. However, he cautioned that the ongoing leadership crisis could affect the financing arrangements and client deals that underpin the company’s growth.
Despite the widespread lowering of target price expectations within the industry, Nvidia’s stock is still considered attractive by some investors.
Seeking Alpha, one of the largest financial investment research and analysis platforms globally, featured comments from several analysts on November 12 regarding Nvidia’s stock outlook.
Analyst Mike Zaccardi assigned a “Buy” rating to Nvidia, arguing, “Despite the uncertainties surrounding leadership, I maintain my ‘Buy’ rating for Nvidia. The current expected price-to-earnings ratio (based on projected earnings per share for the next 12 months) stands at 14, and robust growth is anticipated for both revenue and net profit by fiscal year 2028.”
James Foord, another analyst, bestowed a “Strong Buy” rating on Nvidia, emphasizing in his analysis titled “Jensen Huang Can Be Replaced, But Nvidia Is Irreplaceable” that the company’s AI development plans, substantial order backlog, and solid competitive barriers indicate that Nvidia’s dependence on Huang is far less than market fears suggest. He believes the current stock price is unreasonably undervalued and reiterated a “Strong Buy” rating, setting a target price of $239 for January 2028.
Analyst Agar Capital also rated Nvidia as a “Strong Buy,” mainly because the stock has fallen 35% from its peak, suggesting considerable upside potential. Their target valuation for Nvidia stands at $220.
Conversely, analyst Oriental Trader provided a “Strong Sell” rating, cautioning that the accelerating development of in-house AI chips by major cloud service providers and tech giants poses long-term risks for Nvidia. This analyst recommended reducing exposure to Nvidia’s stock and instead diversifying investments through a broader ETF focused on AI.
It is important to note that Nvidia is currently under investigation, and it remains to be seen how the outcomes of this inquiry may impact the company’s operations moving forward.