Phoenix 24
A historic selloff tests confidence in the AI economy.
SANTA CLARA, California. Nvidia has lost approximately $1.8 trillion in market capitalization since reaching its record valuation on October 6, as investors reassess the semiconductor giant’s future following the resignation of co-founder and longtime chief executive Jensen Huang. The decline reflects growing uncertainty surrounding corporate leadership, artificial intelligence investment and the sustainability of extraordinary market expectations.
Nvidia’s shares closed at $166.19 on November 12, falling 4.3% after the company confirmed Huang’s departure. The stock had reached a record closing price of $239.24 on October 6, highlighting the scale of the subsequent market correction.
The company’s board appointed Chief Financial Officer Colette Kress as interim CEO while beginning a search for a permanent successor. Kress, who joined Nvidia in 2013, inherits responsibility for maintaining investor confidence and overseeing a business central to global AI infrastructure development.
Huang’s departure followed reports concerning his personal relationships and allegations involving possible Chinese intelligence connections. Those allegations have not established that he knowingly disclosed protected technology or engaged in espionage.
The leadership transition has nevertheless prompted analysts to reconsider Nvidia’s valuation. Huang played an unusually influential role in product strategy, partnerships with major technology companies and relationships with governments investing in advanced computing infrastructure.
Dan Coatsworth of AJ Bell noted that Nvidia’s daily operations could continue under new leadership, although questions remain about its longer-term strategic vision.
Some analysts believe the resignation will have limited immediate effects on earnings. Bloomberg Intelligence’s Kunjan Sobhani suggested that financial projections for fiscal 2027 and 2028 may remain largely unchanged, while acknowledging greater uncertainty surrounding succession and commercial partnerships.
Attention now turns to Nvidia’s November 17 earnings announcement. The company has projected quarterly revenue of approximately $108 billion, while analysts surveyed by Visible Alpha expect roughly $109.3 billion.
Investors will also examine demand from major cloud providers, spending commitments by AI developers and Nvidia’s ability to deliver its next-generation Vera Rubin computing systems.
The market correction raises a question extending beyond a single technology company. Nvidia’s extraordinary valuation reflected expectations that artificial intelligence infrastructure spending would continue expanding rapidly. Its recent decline demonstrates how leadership uncertainty can influence those expectations even when underlying demand remains substantial.
For Nvidia, the immediate challenge is demonstrating that its technological leadership and commercial relationships can remain durable without the executive who helped establish them.
Beyond the Numbers, the Consequences.