Nvidia Stock Plunges More Than 10% After Jensen Huang Resigns, Putting $400 Billion in Market Value at Risk

Nvidia shares plunged more than 10% on Thursday, 12 November, after Jensen Huang resigned as chief executive, a sell-off that threatened to wipe out more than $400 billion (£298 billion) of the chipmaker's market value in early trading.

The stock was down 11.9% from Wednesday's $173.73 (£129.43) close by 9:14 a.m. ET. After the open, it fell as much as 14%, its lowest since June 2025.

Bloomberg said the slide erased as much as $601 billion (£448 billion) in market value and pushed Nvidia below $4 trillion (£2.98 trillion) for the first time since 2025. If that holds at the close, it will be the largest one-day wipeout of market value for any stock on record.

Kress Takes Over With No Word From Huang

Huang's resignation as president, CEO, and director took immediate effect. Chief financial officer Colette Kress, at Nvidia since 2013, will serve as interim CEO while remaining finance chief. The board 'will consider internal and external candidates' for the permanent role.

Harvey C. Jones, a director since 1993 and former Synopsys chief executive, becomes Nvidia's first-ever chair. He said the board expects operations, customer commitments, and the product roadmap 'to continue without interruption.'

The announcement praised Huang's 'immeasurable contributions' but carried no comment from him or mention of the allegations.

From Spy Report to Resignation

The scrutiny began on 29 October, when The New York Times reported that US intelligence officials had concluded Alice Huang, a Chinese citizen and former executive at Singapore-based Nvidia customer Megaspeed, was passing information to Beijing.

According to the newspaper, surveillance over suspected chip diversion to China showed she had grown close to Jensen Huang, to whom she is not related, though officials initially believed he was unaware of her activities.

On Sunday, 8 November, Huang wrote in a memo to staff that did not name the woman, 'I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.'

The board opened an independent inquiry that day into reports he was 'the target of a foreign intelligence effort' but said it had 'confidence in Jensen and his leadership team.'

Shares fell as much as 8% on Monday. On Tuesday, independent directors hired Wachtell, Lipton, Rosen & Katz and former federal prosecutor Joon H. Kim.

On Wednesday, the Times, citing five former employees, reported a second relationship, with Kimberly Powell, who leads Nvidia's healthcare business and reports to Huang. Reached by phone, Huang said, 'I don't think you should be talking to me directly,' and hung up. Powell did not immediately respond.

The Wall Street Journal reported the board was preparing to remove him. The stock fell about 9% in after-hours trading, and directors met that night.

Analysts Slash Targets Before Earnings

Bernstein downgraded the shares to market perform and halved its price target to $200 (£149) from $400 (£298), writing, 'With the new allegations, it feels impossible to us for the board to keep him in the role.' Oppenheimer also downgraded the stock and pulled its target.

Nvidia reports third-quarter results on 17 November. Three Republican House committee chairs had asked Huang to attend a closed-door briefing on 18 November, and a class-action lawsuit in California federal court accuses Nvidia and Huang of inflating the share price by failing to disclose Huang's relationship.