Nvidia Shares Tumble Again as Investors Weigh CEO Leadership Transition
Nvidia stock declined roughly two percent on Friday, bringing its weekly losses to about thirteen percent after CEO Jensen Huang stepped down Thursday. Huang resigned following reports of extramarital affairs, including one involving a woman U.S. intelligence officials suspect may be a Chinese asset. The company named CFO Colette Kress as interim CEO while it searches for a permanent replacement. Huang's departure raises questions about Nvidia's future strategy amid ongoing congressional inquiries into national security implications. Meanwhile, some investors view the steep sell-off as a valuation opportunity, noting the stock trades at historically cheap multiples despite Nvidia's strong earnings growth and dominant position in artificial intelligence infrastructure. The company reports third quarter results on Tuesday, marking its first earnings without Huang and offering investors clarity on business fundamentals separate from leadership uncertainty.
Key facts
- Nvidia stock fell 2.01% on Friday, November 13, closing at $162.85, extending its weekly decline to 12.75%
- CEO Jensen Huang resigned Thursday after reports of affairs with two women, one suspected by U.S. intelligence of having ties to China
- Nvidia's market capitalization dropped below $4 trillion for the first time since July 2025
- CFO Colette Kress was named interim CEO; company will conduct permanent successor search
- HSBC downgraded stock from Outperform to Hold with price target cut from $375 to $170 per share
- Nvidia trades at approximately 11 times forward earnings, its lowest valuation in 14 years
- Nasdaq Composite fell 0.91% on Friday as semiconductor sector declined broadly
- Huang has agreed to testify before Congress before Thanksgiving on national security implications
- Nvidia reports third quarter earnings on Tuesday, its first results without Huang as CEO
How different outlets framed it
Left-leaning coverage: Left-leaning outlets highlight national security concerns and demand accountability, with Democratic Senator Elizabeth Warren and others calling for investigations into Nvidia's compliance with export controls and whether sensitive technology may have reached China. They emphasize Congressional oversight is necessary regardless of Huang's resignation and that potential intelligence compromises require thorough examination.
Right-leaning coverage: Right-leaning outlets stress individual market discipline and free-market opportunity, with some commentators arguing the sell-off presents attractive valuations for long-term investors. They emphasize investor choice and the importance of separating emotional market reactions from solid business fundamentals, while also noting security concerns require proper but proportionate government oversight.
Limits of this briefing
Coverage reflects available reporting as of November 14, 2026. The full extent of national security implications remains under investigation by Congress and the FBI. Market reactions may shift substantially following Tuesday's earnings report and any Congressional testimony.
Sources
- CNBC: Nvidia closes below $4T market cap for first time since July 2025 in Huang fallout Centre
- Yahoo Finance: Stock market today: Dow rises, S&P 500 and Nasdaq slip to cap volatile week, Nvidia stock plunge deepens Centre
- CNN: Jensen Huang summoned to testify before Congress after resigning as Nvidia CEO Left
- The Hill: Congress seeks answers on Nvidia as Jensen Huang resigns amid China spying scandal Centre
- Motley Fool: Stock Market Today, Nov. 13: Nvidia Slides After HSBC Downgrades Stock to Hold on CEO Uncertainty Centre