Nvidia shares crash 13% as CEO Jensen Huang resigns; valuation hits 14-year low

Nvidia (NVDA) shares crashed sharply on November 12, 2026, falling over 13% at the opening bell before recovering slightly to trade around $165.06 (down roughly 5% on the day), pushing the company's market capitalization below the $4 trillion mark.

Nvidia shares plunged after CEO Jensen Huang resigned following 33 years at the helm, triggering fresh uncertainty over the AI chipmaker's leadership, valuation and future growth prospects.

Nvidia shares plunged on Thursday after co-founder and chief executive Jensen Huang stepped down, ending a 33-year run at the helm of the world's most valuable chipmaker and leaving investors to assess the future of the artificial intelligence giant without its most recognisable face.

The company said Chief Financial Officer Colette Kress would take over as interim CEO as its board searches for a permanent successor. Nvidia also named board member and former Synopsys CEO Harvey Jones as its first-ever board chairman.

Huang will leave the company's board as well. He owns about 3.61% of Nvidia, making him its fourth-largest investor, according to news agency Reuters.

The leadership change triggered a sharp sell-off in Nvidia shares. The stock fell 10.3% in premarket trading on Thursday, putting the company's market value on course to slip below $4 trillion for the first time since July 2025.

At 9.11 am ET, Nvidia shares were down 10.5% at $155.48, compared with the previous close of $173.73, according to market data reported by Financial Express.

The sell-off has also put the spotlight on Nvidia's valuation. News agency Reuters reported that the company's shares were trading at around 12 times their 12-month forward earnings estimates, the lowest multiple since November 2012. That marks a 14-year low in its valuation multiple, not in the share price.

WHY DID JENSEN HUANG STEP DOWN?

Huang's exit follows days of mounting pressure over reports of alleged extramarital relationships involving the longtime Nvidia chief.

The controversy intensified after reports linked Huang to a businesswoman, Alice Huang, whom US authorities suspect of spying for China. Nvidia's board had launched an investigation into the matter, while questions grew over the company's leadership and governance.

The board's scrutiny had already weighed heavily on the stock. Nvidia had lost around $300 billion in market value since the investigation was announced on Sunday, Reuters reported.

Huang, 63, co-founded Nvidia in 1993 and led its transformation from a graphics chipmaker focused on gaming into the dominant supplier of processors powering the global AI boom. His departure marks a significant shift for a company whose strategy, product roadmap and public identity have been closely associated with him.

WHO WILL LEAD NVIDIA NOW?

Colette Kress, who has served as Nvidia's CFO since 2013, will take charge on an interim basis while the board looks for a permanent successor.

She joined Nvidia after nearly 25 years in finance roles at technology companies, including Microsoft and Cisco. Her appointment offers continuity at a time when investors are looking for clarity on the company's leadership and business direction.

However, the interim appointment does not settle the question of who will permanently replace Huang. Nvidia is expected to consider candidates from within and outside the company.

The challenge is substantial. Huang was not just the company's chief executive but also its co-founder and the driving force behind its long-term technology strategy. Finding someone who can command similar influence over its engineering teams, customers and partners will not be easy.

NVIDIA'S EXIT SENDS RIPPLE EFFECTS THROUGH AI STOCKS

The uncertainty surrounding Nvidia has spread across the wider AI investment ecosystem.  Shares of CoreWeave fell 13.6% in premarket trading, while Nebius dropped 20%. Other data-centre and AI-linked companies also came under pressure.

Nvidia's position at the centre of the AI ecosystem makes the leadership change particularly consequential. The company supplies the chips that power data centres and AI systems, while its investments and financing arrangements have helped support parts of the infrastructure built around its technology.

Investors are already questioning whether the enormous spending on AI infrastructure will generate adequate returns. Huang's departure adds another layer of uncertainty to a sector facing concerns over rising debt, heavy capital expenditure and the pace at which AI investments will pay off.

The timing is also significant. Nvidia is due to report its quarterly results on November 17, giving investors an early opportunity to assess the company's outlook under a period of leadership uncertainty.

Nvidia share price crash :  falling over 13% : NVIDIA'S EXIT SENDS RIPPLE EFFECTS THROUGH AI STOCKS