Jensen Huang resigned as Nvidia CEO on Thursday following reports of extramarital affairs, sending the chipmaker into its longest losing streak since 2012 as shares finished the week at $162.85, according to Techechelon.
The tech-heavy Nasdaq index recorded its best weekly performance since August, according to CNBC.
Market observers note that investors losing trust in Nvidia may rapidly pivot to competitors. “If we get into an environment where people can’t trust … Nvidia, they’re going to look for other sources for these chips because they need them,” said Dave Mazza, CEO of Roundhill Investments, told CNBC.
Mazza added that large technology companies could ultimately emerge as the primary beneficiaries of the market disruption. “We may have been put in an environment, as much as investors have sort of been looking for areas outside of Big Tech, where net-net Big Tech ends up as the winner once again,” Mazza told CNBC.
Alternative Chipmakers Gain Traction
Competitors such as Advanced Micro Devices and Broadcom captured significant investor capital as Nvidia faced prolonged headwinds. AMD finished trading up close to 13% for the week, while Broadcom posted similar gains, according to CNBC.
Dan Ives, partner and senior managing director at Yorkville Ives, said that market sentiment toward other artificial intelligence chip developers remains resilient. Ives lowered his price target on Nvidia to $225 from $300 following the resignation, but maintained a buy rating on the stock.
“Nvidia remains the clear leader in GPU chips for the AI Revolution. They are roughly 2-3 years ahead of the nearest competitor and the demand trajectory the next few years is not changing because Jensen is gone,” Ives wrote in a note to investors, according to CNBC.
Elon Musk warned on Saturday that Nvidia’s supplier relationships could face severe disruption following the executive departure. “Jensen drove supply chain brilliantly at Nvidia, but many of those deals were a handshake with Jensen, not a written contract,” Musk wrote, adding that “critical deals will be lost,” according to Techechelon.
Congressional Pushback on Data Centers
Democratic control of Congress following the November 3 elections introduces a second major variable that could slow down data-center construction across the country. Mazza told CNBC that legislative hurdles may restrict new infrastructure development.
Ives estimates that the political shift could prevent 10% to 20% of planned data centers from materializing. Despite a potential slowdown in physical buildouts, Ives said that overall market demand continues to outstrip available supply by a four-to-one margin.
“The game is going to change for Big Tech. It will slow it down. But there’s no overbuild, no bubble concerns. And I view that as actually a positive thing,” Ives told CNBC.
ETF Performance Reflects Divergent Outcomes for Cloud Providers
Fund activity across specialized investment vehicles reflected divergent outcomes for smaller cloud providers. The Roundhill Magnificent Seven ETF (MAGS) ended the week with a marginal gain of less than 1%, while the Roundhill Neocloud ETF (NCLD) rose over 1%, according to CNBC.
The neocloud ETF remains down 39% since its launch in August 2026, pressured by ongoing balance sheet concerns tied to Nvidia’s financing of the broader artificial intelligence buildout. Quarterly earnings reports from top holdings yielded mixed results during the week.
Colette Kress Prepares to Deliver Nvidia Market Update
Colette Kress, chief financial officer and newly appointed interim CEO, will deliver her first market update when Nvidia reports third-quarter earnings next Tuesday. “Our focus remains on serving our customers, partners, developers and shareholders,” Kress said in a statement released on Thursday morning.
Frequently Asked Questions
When does Nvidia report its third-quarter earnings?
Interim CEO and CFO Colette Kress will report the company’s third-quarter earnings next Tuesday.
How did major stock indexes perform during the Nvidia selloff?
The tech-heavy Nasdaq index recorded its best weekly performance since August, while the Roundhill Magnificent Seven ETF finished the week up less than 1%.
What price target did Yorkville Ives set for Nvidia?
Yorkville Ives lowered its price target on Nvidia to $225 from $300 while maintaining a buy rating on the stock.
Keep reading