Nvidia shares tumbled sharply by up to 13% on Thursday, November 12, 2026, after co-founder and Chief Executive Officer Jensen Huang stepped down with immediate effect, ending his 33-year tenure at the helm of the world’s most valuable semiconductor company.
The sudden departure of the artificial intelligence chipmaker’s longtime strategist triggered widespread selling across global technology markets, putting Nvidia’s market capitalization on course to slip below $4 trillion for the first time since July 2025.
Market Sell-Off & 14-Year Valuation Low
Investors reacted swiftly to the leadership vacuum at the center of the global AI boom, dragging down both Nvidia and its broader ecosystem partners:
- Share Price & Market Cap Drop: Nvidia shares fell 10.3% in premarket trading and extended losses to 13% during Thursday’s session (trading around $155.48 early in the day versus Wednesday’s close of $173.73). The company has shed roughly $300 billion in market value since its board announced an internal probe on Sunday.
- 14-Year Low Valuation Multiple: According to Reuters data, Nvidia’s stock is now trading at approximately 12 times its 12-month forward earnings estimates—marking its lowest valuation multiple since November 2012 (a 14-year low in its forward earnings multiple, rather than nominal share price).
- Ripple Effects Across AI Stocks: The uncertainty spilled over into AI infrastructure and cloud partners, with CoreWeave dropping 13.6% and Nebius plunging 20% in early trading.
Leadership Overhaul & Board Exit
Alongside his exit as chief executive, Huang (63)—who holds roughly a 3.61% stake in Nvidia, making him its fourth-largest shareholder—is stepping down from the company’s board of directors:
- Interim Leadership: Longtime Chief Financial Officer Colette Kress, who joined Nvidia in 2013 following senior finance roles at Microsoft and Cisco, has been appointed interim CEO while an external executive search firm evaluates internal and external candidates.
- First-Ever Board Chair: Nvidia’s board appointed director and former Synopsys CEO Harvey C. Jones as its first independent board chairman.
- Key Earnings Test Ahead: Huang’s resignation follows mounting scrutiny over alleged extramarital relationships, including ties to businesswoman Alice Huang, whom U.S. authorities suspect of spying for China. Investors will get their first formal update under the new interim leadership when Nvidia reports its quarterly earnings on November 17.
