Nvidia shares tumble as Jensen Huang steps down as CEO US stocks fell at the open, led by tech shares, as investors weighed what Jensen Huang’s resignation as CEO could mean for Nvidia and the wider AI industry. Doloresz Katanich Thu, November 12, 2026 at 10:02 AM EST 4 min read NVDA -6.77% ^GSPC -0.39% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Nvidia shares fell more than 13% at the open on Thursday after the company said co-founder and CEO Jensen Huang was stepping down.
The company's board said Huang had stepped down as president, chief executive and board member, effective immediately.
Chief financial officer Colette Kress will serve as interim CEO while keeping her finance role, and the board will consider internal and external candidates for a permanent replacement.
The company's board met late on Wednesday US time to consider removing Huang, following reports of two extramarital affairs, including one with a woman US authorities suspect of spying for China.
Nvidia shares pared some of their losses shortly after the open and were down 7%.
The plunge in Nvidia's stock pulled the US market lower, threatening to upend the AI boom that has carried Wall Street to record highs in recent years. The S&P 500 fell 0.7% on Thursday.
Weakness among AI stocks sent the Nasdaq Composite down 1.5%, while the Dow Jones Industrial Average added 127 points.
The chipmaker at the centre of the global artificial intelligence boom has lost nearly $600bn (€541bn) in market value since reports emerged of Huang's affair with a woman suspected of spying for China. Analysts expect the company could lose more.
Ben Barringer, head of technology research at Quilter Cheviot, said: "This is an important moment in broader financial markets due to the clout that Huang carried, and the fact he had developed Nvidia into the most valuable and influential company in the world."
Huang, who co-founded Nvidia in 1993, has become synonymous with the company. Its dominance in chips used to train AI models has made Nvidia the poster child for the AI boom.
Speaking about Kress, Barringer said: "She is the most obvious internal candidate and will now likely use this time to prove she deserves it full time. She certainly knows the company inside out and has helped develop what is a hugely successful strategy."
He does not expect any short-term impact on the company, provided its order book remains strong and it continues to deliver on its performance targets.
Barringer added: "What this news threatens to do is harm the wider AI ecosystem in the longer-term. Huang is hugely influential in the debates around AI regulation and has developed Nvidia into the leader in AI investment and financing. With his voice now removed from the table, and the potential for Nvidia to pivot on its strategy over time, the company may not carry the sway it once did."
Before the decision was announced, Dan Ives, partner and senior managing director at Yorkville Ives & Co., said the company could lose a quarter of its valuation if Huang left the chipmaker. Nvidia's market capitalisation was more than $4tn (€3.6tn) at Wednesday's close. The chipmaker has been a major driver in the technology sector.
As the crisis unfolded at Nvidia, shares in rivals including Advanced Micro Devices (AMD) and Broadcom rose sharply.
CoreWeave, however, slid nearly 9%. Nvidia owns a stake of approximately 13% in the data centre and cloud company.
European chip stocks also slipped as investors grew concerned about the wider fallout for the global AI supply chain.
In early afternoon trading on Thursday, ASML was down 2.8% in Amsterdam, while ASM International was down 0.7% and STMicroelectronics was 1.7% lower in Paris. The main European indices were up by 15:00 CET. Germany's DAX was up 0.3%, having pared earlier gains. The benchmark had topped 27,000 points for the first time earlier in the day as Siemens gained more than 4% after reporting record profits, helped by demand from data centres. London's FTSE 100 was up a few points at the same time, and Paris's CAC 40 gained 0.4% by mid-afternoon.
Oil prices reversed earlier losses on Thursday after US President Donald Trump said the US did not need a deal with Iran. At 14:31 CET, Brent crude futures were up 1.23% at $93.90 a barrel, while US West Texas Intermediate futures were up 0.81% at $87.23 a barrel. Brent futures have traded between $72 and $120 a barrel since the Iran war pushed prices higher.
US gold futures for December delivery were down 1.1% at $3,954.50 an ounce at 12:14 CET, as a stronger dollar and expectations of further Federal Reserve rate rises weighed on gold.
In currency trading, the dollar edged down 0.04% to ¥159.71, while the euro slipped 0.03% to $1.1086.
