Nvidia shares fell 12.75% over the week ending November 14 following the resignation of CEO Jensen Huang, erasing approximately $573 billion in market value.
The departure of the long-time leader, who co-founded the company in 1993, has triggered widespread instability across the artificial intelligence sector and drawn intense scrutiny from U.S. lawmakers.
The board forced Huang’s exit last Thursday after reports of multiple extramarital affairs surfaced, including one with Alice Huang, a former executive at Nvidia customer Megaspeed, according to CNN. While the board initially expressed confidence in Huang’s leadership on November 9, mounting national security regarding the potential transfer of sensitive chip technology to China compelled the directors to act.
“I just know Jensen very well,” President Donald Trump said.
“I think this is a technical move, as Bitcoin broke down through its 200-day moving average of about $73,000, which has caused a slew of liquidations and new shorts to develop,” said Rich Rosenblum, co-founder of crypto market maker GSR, as reported by MyBroadband. The broader AI-fueled "risk-off" mood, compounded by the Nvidia scandal, contributed to a wider market slide that saw Bitcoin drop to $62,022 over the weekend.
Thanks to @maureendowd for the shout-out to my Atlantic essay in her new column on the downfall of Jensen Huang: As Julian Gewirtz wrote in The Atlantic, “American strategy has come to depend, to an extraordinary degree, on powerful private-sector actors whose incentives the…”
Petition for Reinstatement
Prominent industry figures, including Tesla and SpaceX CEO Elon Musk, Epic Games CEO Tim Sweeney, and Y Combinator CEO Garry Tan, have publicly supported the campaign. Despite this executive-level backing, the former CEO faces a formal lawsuit in California alleging he misled shareholders, as reported by The Guardian.
Huang Faces Congressional Hearing over Advanced Chip Sales
Lawmakers have scheduled a closed-door hearing for December 1, where Huang is expected to testify regarding the sales of advanced chips to Chinese entities. Commerce Secretary Howard Lutnick is also slated to appear before the Senate Banking Committee to address the oversight of companies like Megaspeed.
Former National Counterintelligence and Security Center director William Evanina told Moneyweb that the ability to covertly access high-level strategic conversations held by leaders like Huang would be “humongous for China.”
Infrastructure Spending Forecast
Despite the current corporate turmoil, industry projections for the AI sector remain aggressive. Gartner forecasts that total global AI spending will reach $4 trillion by 2027, with 59% of that capital—roughly $2.4 trillion—allocated specifically to infrastructure, according to MyBroadband. This represents a 53% increase in infrastructure investment compared to 2026 figures.
Colette Kress Becomes Interim CEO Amid Government Investigation
The Nvidia board appointed long-time CFO Colette Kress as interim CEO following Huang’s resignation on November 13, per CNN.
More than 100K people have reportedly signed an open letter calling for Jensen Huang’s reinstatement as $NVDA CEO. 10% chance he returns. pic.twitter.com/LlxGuzCphv
The U.S. government is investigating whether company secrets were compromised through Huang’s relationship with Alice Huang, a businesswoman identified as a potential national security risk, according to Moneyweb.
Nvidia is scheduled to report its third-quarter earnings on Tuesday, while Jensen Huang is expected to appear for a congressional hearing on December 1, as noted by CNN.
Elon Musk says a petition to reinstate Jensen Huang as $NVDA CEO is underway and that he plans to sign it. That comes as Nvidia employees are already pushing for Jensen’s return. pic.twitter.com/nOur0HR0sD
Earlier coverage: Nvidia Shares Drop 3% After Jensen Huang Resigns as CEO
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