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Nvidia shares fall after Jensen Huang departure amid allegations and AI bubble concerns
Nvidia shares fell after the sudden departure of CEO Jensen Huang, following reporting on alleged affairs and claims involving a suspected Chinese spy. The stock has also faced pressure from investor concern about a potential AI bubble. Analysts said the board acted to limit reputational and governance risk as markets reacted.
Shares of Nvidia fell on Thursday after CEO Jensen Huang left suddenly. Reports linked Huang to an affair involving a woman described as a suspected Chinese spy. Investors also weighed fresh questions about Nvidia’s leadership and the wider artificial intelligence trade.
/img/2026/11/nvidia-shares-fall-after-ceo-jensen-huang-departure-amid-allegations-1794511217981-600x338.jpg "Nvidia shares fall after CEO exit")
The stock dropped 5 per cent in afternoon trading. It was also more than 30 per cent below its all-time high from just over a month ago. Nvidia shares had faced weeks of pressure from the affair coverage and fears of an AI-sector bubble.
Nvidia shares fall as Jensen Huang exits
The New York Times reported on Wednesday that Huang had a second affair. The report said the other relationship involved an Nvidia executive who reports to Huang. The developments added to scrutiny around governance and management at the chipmaker.
"The old Jensen, the black leather jacket, the Godfather of AI, the rock star viewed as the face of the AI boom, is over and in the past; his value to the company pre and post this week is dramatically different, and the board did what we said it needed to do, which is rip off the band-aid and take Nvidia into its next chapter without him after this dark moment for Jensen and Nvidia, wrote Dan Ives, partner and senior managing director at Yorkville Ives & Co.\"
Nvidia valuation and Nasdaq Composite tied to Nvidia moves
Nvidia is valued at more than USD 4 trillion. The company has helped drive gains across the technology sector. It was also one reason the tech-heavy Nasdaq Composite index rose for most of this year. The same link mattered as the index slumped 7 per cent over the past month.
Nvidia rivals rise while CoreWeave drops amid Nvidia stake
As the situation unfolded, shares of rivals moved higher. AMD, also called Advanced Micro Devices, and Broadcom rose sharply. CoreWeave, however, slid more than 7 per cent. Nvidia owns about a 13 per cent stake in the data centre and cloud company.
The market reaction showed how closely Nvidia remains tied to AI sentiment. Investors tracked both leadership turmoil and broader bubble concerns. The company’s large valuation also kept focus on ripple effects for tech stocks. Trading in rivals and linked firms reflected shifting bets as the crisis developed.
With inputs from PTI
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