Nvidia has lost approximately $1.8tn (€1.6tn) in market value since its record close on 6 October, following the resignation of CEO Jensen Huang. The chipmaker's shares fell 4.3% to $166.19 on Thursday, approaching a 52-week low. The selloff follows weekend reports regarding Huang's infidelity, which wiped out $900 billion of the company's value between the previous Friday's close and Thursday's intraday low.
Colette Kress, who has served as Nvidia's finance chief since 2013, has assumed the role of interim CEO while the board searches for a permanent successor. Investors are now weighing whether the company can maintain the rapid pace of dealmaking and infrastructure investment that characterized the AI boom under Huang's leadership. Huang's tenure was marked by significant investments in customers and suppliers to build out the infrastructure required for AI labs and cloud providers.
Analysts are currently reassessing the "Jensen premium" associated with the company's valuation. Kunjan Sobhani, a senior semiconductor analyst at Bloomberg Intelligence, noted that while Huang's departure is unlikely to alter earnings estimates for the 2027 and 2028 financial years, the company faces long-term risks regarding succession, dealmaking, and regulatory scrutiny over China.
Market analysts have provided varying outlooks on the company's valuation without Huang at the helm. Analysts at Yorkville Ives estimated Nvidia's value at $225 a share without Huang, a 25% decrease from their $300 estimate with him in place. Other brokerages have adjusted their targets, with Bernstein and Baird cutting theirs to $200, while Citi lowered its target to $225 from $285. Conversely, Goldman Sachs maintained a buy rating and a $220 target, citing the company's product plans and order backlog.
"While the shares have been knocked for six on the spy scandal and Huang’s subsequent departure from the company, no CEO is irreplaceable, and Nvidia’s day-to-day business will keep ticking along. It’s the long-term vision that could come under question," Dan Coatsworth, head of markets at AJ Bell, said.
Nvidia is scheduled to report quarterly results on Tuesday, 17 November, after the US market closes. The company previously reported revenue of $96.2bn (€86.8bn) for the quarter ending 26 July, with data centers accounting for over 90% of those sales. Nvidia has forecasted revenue of approximately $108bn (€97.5bn) for the upcoming quarter, while analysts polled by Visible Alpha expect $109.3bn (€98.6bn).
