Jensen Huang's exit puts AI stocks to the test as Nvidia shares slide

what happened

According to the Wall Street Journal, Jensen Huang resigned as Nvidia's chief executive on Thursday after reports of two extramarital affairs, one involving a suspected Chinese spy. Nvidia shares kept falling, and the company's market value lost more than $2 trillion from its October 6 high. The stock has dropped 31% since then, and at one point on Thursday it was down as much as 14%.

Analysts are divided. Wedbush said it could not recall a comparable case without a clear succession plan, Oppenheimer removed its price target, and Bernstein halved its projection. Even so, some retail investors bought the dip, with $111 million flowing into the stock in the first half-hour of trading, according to Vanda Analytics. Colette Kress will lead the company on an interim basis.

why it matters

Nvidia remains central to the AI supply chain, so its leadership affects cloud operators such as CoreWeave and chip suppliers. Rising rates and export-control scrutiny add uncertainty, and the choice of a permanent chief will be a key factor for investors assessing the fallout.

market impact

AI stocks and Nvidia: leadership uncertainty weighs on the shares, while rivals Broadcom and AMD gained

• ▼Nvidia pressure down — founder's exit and unclear succession weigh on investor confidence
• ▲Broadcom pressure up — investors shift interest toward Nvidia's competitors

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