Nvidia shares plunged 10.3 per cent in premarket trading on Thursday, November 12, 2026, after founder Jensen Huang resigned as the company’s CEO with
immediate effect. The sudden leadership change has shaken confidence in one of the biggest names in artificial intelligence. Investors are now questioning what happens to Nvidia’s business and whether the wider AI industry could face a bigger sell-off.
The American chipmaker has appointed Chief Financial Officer Colette Kress as interim CEO after Huang stepped down as president, chief executive and board director. Nvidia’s shares had already fallen more than 8 per cent in after-hours trading on Wednesday following reports about his possible removal. The latest decline threatens to wipe hundreds of billions of dollars from the company’s market value.
Read more: Jensen Huang resigns as Nvidia CEO with immediate effect: Who is Colette Kress and who could replace him?
How much have Nvidia shares fallen?
According to Reuters, Nvidia shares were down 10.3 per cent in premarket trading on Thursday. The stock had closed Wednesday’s regular session at $173.73, before dropping sharply after the market shut.
Nvidia’s market value was heading below $4 trillion as investors reacted to Huang’s resignation and uncertainty over the company’s future leadership.
The reported 10.3 per cent fall reflects premarket trading. The final percentage change for Thursday will depend on how the stock performs during the regular US trading session.
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Why is Jensen Huang’s exit worrying investors?
Huang spent 33 years building Nvidia into a major supplier of chips used for artificial intelligence. His departure follows controversy surrounding reported personal relationships and questions about possible national security risks.
Nvidia has confirmed his resignation and appointed Kress as interim chief. The company has not established that the allegations involving national security have been proven.
Investors are concerned about the loss of Huang’s leadership, particularly his close relationships with major customers and his influence over Nvidia’s long-term strategy.
Read more: Jensen Huang controversy: Who is Jay Puri, and could he become NVIDIA’s next CEO?
Is the AI bubble about to burst?
The Nvidia sell-off has spread to other companies connected to artificial intelligence. Nvidia-backed cloud computing company CoreWeave fell around 13.6 per cent in premarket trading, according to Reuters.
The bigger worry is how much money AI companies are spending. Technology giants have committed enormous sums to building data centres, buying chips and developing AI models. Investors increasingly want evidence that these investments will generate enough revenue.
There are concerns about companies financing one another’s AI projects, creating risks if spending slows.
Read more: Jensen Huang in bigger trouble than a million-dollar divorce? Taiwan, FBI probe spy scandal
What happens to AI stocks next?
Nvidia’s next quarterly earnings announcement is scheduled for November 17. Investors will be watching its financial results, customer demand and any changes to its business strategy.
Huang’s exit has added fresh uncertainty to an already nervous market. The coming days could reveal how much investor confidence depends on Nvidia’s founder.
