Nvidia shares slide as Wall Street reassesses risks of Huang departure

Traders Union
All News
Stocks
Nvidia shares slide

Highlights

Nvidia shares fell 7.14% in premarket trading amid uncertainty over Huang's future.
Bernstein cut its Nvidia price target to $200 as analysts reassessed leadership risks.
Elon Musk expressed interest in hiring Huang.

Nvidia stock dropped 7.14% to $161.49, down $12.41, according to the latest premarket data. The decline followed a Wednesday close of $173.73 and an after-hours selloff that briefly reached 10%. The pressure increased after reports that Nvidia's board was preparing to remove Huang, although no final leadership decision had been announced, Bloomberg reports.

Leadership uncertainty prompts Wall Street downgrades

The latest turmoil followed a New York Times report alleging that Huang had a relationship with a direct subordinate. It came days after he acknowledged a separate affair involving a woman suspected of having connections to Chinese intelligence. The allegations have raised questions about corporate governance and succession planning at a company whose strategy remains closely associated with its founder.

Wall Street analysts have responded by reassessing Nvidia's valuation. Bernstein downgraded the stock from outperform to market perform and reduced its price target from $400 to $200. Baird also moved to a neutral rating, while Morgan Stanley removed Nvidia from its list of preferred investments. Analyst Yorkville Ives estimated Nvidia's fair value at $225 per share without Huang, compared with $300 if he remained CEO, reflecting the perceived importance of his leadership.

Elon Musk offers support as AI stocks retreat

Tesla CEO Elon Musk publicly expressed interest in hiring Huang if he became available, responding to a suggestion on X that he recruit the Nvidia founder. The two executives have known each other for at least a decade and participated in President Donald Trump's visit to China earlier in 2026.

Tesla relies on Nvidia graphics processors to train artificial intelligence models for autonomous driving and robotics, although it is also developing its own chips. Musk has previously praised Huang and expressed plans to continue buying Nvidia technology. His latest comments highlighted Huang's influence across the AI industry but did not indicate that he intended to leave Nvidia.

Nvidia earnings face a critical test

The uncertainty has spread to other AI-related companies. CoreWeave fell more than 5% in extended trading, while Intel and Dell lost approximately 3% each, and Super Micro Computer declined more than 4%. If Nvidia's losses persist, its market capitalization could fall below $4 trillion.

Nvidia is scheduled to report quarterly earnings on November 17. Investors will be watching whether strong demand for AI chips can offset concerns about management stability, potential changes to the company's China strategy, and its extensive financing relationships across the AI industry. A leadership transition could also complicate decisions on research spending and long-term partnerships.

We also reported Nvidia loses more than $400 billion in market value as China chip scandal widens.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.