Nvidia CEO Jensen Huang resigns: Is the stock now a 50% bargain? Harry Jones Fri, November 13, 2026 at 2:30 AM EST 5 min read NVDA -3.93% AVGO +3.64% CLS +4.20% Explore stocks 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.
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Investing.com — Chip stocks have kept rebounding from the AI selloff, with Broadcom (NASDAQ:AVGO) up 6.1% and Celestica (NYSE:CLS) up 4.6% over the past week. Yet NVIDIA (NASDAQ:NVDA) tumbled 13.2% over the same stretch as its board investigated CEO Jensen Huang—and fell another 10% on Thursday after the co-founder resigned with immediate effect, ending his 33-year tenure.
The departure follows days of mounting scrutiny over personal misconduct allegations and an independent board probe, leaving CFO Colette Kress to step in as interim CEO alongside newly appointed board chairman Harvey C. Jones. Thursday's drop builds on Wednesday's $173.73 close, which had already capped a 23.2% monthly slide.
That divergence prices NVIDIA as if its earnings leave with its founder, but hyperscalers cannot rip out Blackwell and Vera Rubin racks overnight. Quarterly revenue just more than doubled, yet the stock traded at only 21.7 times trailing earnings heading into Thursday's sell-off. That leaves NVIDIA priced for a leadership vacuum rather than for underlying earnings that point to deep value.
Identifying when a governance shock separates a stock from the AI cash flows beneath it is what ProPicks AI is built for. In Tech Titans, InvestingPro's strategy dedicated to high-margin tech leaders, NVIDIA was left out of the November lineup in favor of companies capturing the same AI buildout without single-executive risk—including a wafer-inspection equipment monopoly, a specialized semiconductor foundry, and an enterprise cloud security provider.
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NVIDIA's pricing power rests on an installed base its customers cannot replace on any short timeline. The company commands an estimated 70% to 85% of the AI accelerator market, and its CUDA software ecosystem, built over nearly two decades, turns a hardware lead into a full-stack platform. That platform has lifted revenue per gigawatt of data center capacity from roughly $18 billion with Hopper to $40 billion with Vera Rubin.
Second-quarter fiscal 2027 results proved how deep that lock-in runs. Revenue more than doubled year-over-year to a record $96.2 billion, topping the $91.9 billion estimate, while adjusted EPS of $2.22 beat the $2.08 consensus. Data center revenue climbed 18% sequentially to $89 billion—92.7% of total sales. Vera Rubin began production shipments in August with purchase orders from every major hyperscaler, and management guided third-quarter revenue to $108 billion with preliminary fiscal 2028 growth of about 70%.
That demand converts directly into cash. NVIDIA generated $134.4 billion in operating cash flow over the last twelve months and returned a record $26 billion to shareholders in the second quarter alone, split between $20 billion in buybacks and $6 billion in dividends.
Wall Street is split by the governance news rather than the numbers. Baird downgraded the stock to Neutral and cut its price target by 60% to $200, and Morgan Stanley removed NVIDIA from its Top Pick list—yet Morgan Stanley, Wells Fargo, and Yorkville Ives all held Buy ratings with $300 targets, keeping the median analyst target at $319.99.
InvestingPro's Fair Value models flag NVIDIA as a "Bargain" at $261.16 per share, 50.3% above the $173.73 close. Analysts issued 37 upward EPS revisions against just one downward over the past 90 days, and the stock trades at 10.7 times fiscal 2028 estimates with a PEG ratio of 0.17.
The main risk is leadership itself. Huang manages about 60 direct reports and has no designated successor, and the board has opened an independent probe led by outside counsel Wachtell, Lipton, Rosen & Katz. Yorkville Ives estimates a further 25% to 30% downside if Huang is removed. Memory price inflation will also push gross margins from 75% to a 71% to 72% trough in the fourth quarter, and China data center revenue remains excluded from guidance ahead of third-quarter results on November 17.
Before buying into a boardroom coup, investors must weigh NVIDIA's architectural lock-in against the loss of an irreplaceable founder. Hyperscaler customer concentration, China export restriction exposure, and forward margin durability under a potential interim leadership transition are detailed inside the NVIDIA Pro Research Report.
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With Huang stepping down, the customers built on NVIDIA's platform still cannot leave on the same timeline as its chief executive. Third-quarter results on November 17—the first earnings test under interim leadership—will show whether hyperscaler orders held through the governance turmoil.
Relying on a single AI market leader as it searches for a permanent successor leaves capital exposed to an unresolved leadership transition. Rather than attempting to guess how a sudden succession battle will play out, InvestingPro's data-driven strategies evaluate thousands of balance sheets every month to isolate companies capturing technology cash flows while sidestepping single-executive headline risk.
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Disclosure: The author holds no position in the stocks mentioned. Data and financial metrics as of November 12, 2026.
Nvidia CEO Jensen Huang resigns: Is the stock now a 50% bargain?
