Nvidia Names Colette Kress Interim CEO as Stock Drops 30%

Nvidia stock drops 30% from October peak

Nvidia stock fell 15% last week and is now down about one-third from its October peak. Shares have dropped more than 13% in recent days, extending a pullback that exceeds 30% from the all-time high of $243.37 reached on Oct. 6, 2026.

The stock closed at $166.19 on Thursday, Nov. 12, 2026. On Friday morning, Nov. 13, 2026, the stock traded at approximately $162, a 2.4% decline from the previous day's close. Live market data from Nov. 14, 2026, shows the stock at $162.85, down $10.88 or 6.26% from the prior close.

On Thursday, Nov. 12, 2026, the stock fell as much as 13% before recovering to close down 4.34%. This decline contributed to a monthly drop of more than 20% and the stock's worst week in over a year.

Retail traders remained active during the volatility, with Vanda Research recording the largest opening bid ever for the stock on Thursday. Small investors purchased a net $111 million in the first 30 minutes of trading.

Analyst Parkev Tatevosian wrote that the stock’s tumble creates a potential buying opportunity despite the changed value proposition following the exit of Huang.

Wall Street analysts issue multiple downgrades

At least 10 Wall Street analysts downgraded Nvidia this week. Nvidia currently holds a Zacks Rank #2 (Buy) rating.

Melius Research downgraded the stock to Hold with a $185 target, and Oppenheimer moved to Perform while withdrawing its target.

Goldman Sachs analyst James Schneider kept a Buy rating but cut his target to $220 from $300.

Financial valuation and growth projections

Nvidia projects $108 billion in revenue for fiscal third-quarter 2027, representing 12.3% growth over the second quarter. The Data Center segment remains the primary growth engine as the Vera Rubin platform enters full production.

Gross margins for the third quarter should reach 74%, down from 75% in the second quarter. The company returned $26 billion to shareholders during the second quarter.

Nvidia currently trades at a forward price-to-earnings ratio of 17.87, lower than the 21.15 average for the semiconductor industry. Some metrics place the forward price-to-earnings ratio below 12 to 13 times expected earnings.

The Relative Strength Index currently indicates oversold levels, suggesting the stock is cheap.

Leadership transition and workplace culture concerns

Nvidia is undergoing a leadership transition after Jensen Huang resigned as CEO. Huang stepped down following his admission of an extramarital affair.

The Justice Department has reached no conclusion on the spying allegations, and China denies them. Controversy surrounding the resignation includes reports of an affair with a Chinese spy.

Analysts have raised concerns about the company's internal environment and external business risks. Truist cited worries regarding workplace culture and reports that Nvidia chips reached Chinese companies and government agencies. DA Davidson flagged potential short-term disruption to the company's Asia business as a risk.

Interim CEO Colette Kress addressed employees on Thursday. Kress stated, "Nvidia's strength has always come from its people". She added that she is "committed to building on the extraordinary foundation Jensen created over the last 33 years".

Investor sentiment remains divided

Lentini advises current shareholders not to sell during the current pullback, arguing that business performance may prove more significant than executive scandals in the long term.

Investors should consider their own financial situation, portfolio weight, and time horizon before deciding whether to hold or sell after the sharp decline.

Key factors for the upcoming earnings report

Nvidia will report its fiscal third-quarter 2027 earnings on November 17, 2026, after the market closes. Investors are currently weighing the company's artificial intelligence-driven growth prospects against concerns regarding leadership and stock market volatility.

Analysts project that Nvidia will report $108.8 billion in revenue and earnings per share of $2.47 for the third quarter. Major investment banks previously set price targets of $350 from Bank of America, $315 from Citi, and $300 from both Goldman Sachs and Morgan Stanley. These targets were established before the current scandal involving Jensen Huang reached its current scale.

Seeking Alpha downgraded the rating, stating that prior $325 price targets are no longer realistic. A 25% discount to that price now implies a $245 valuation. Long-term investors must decide whether Nvidia’s lead in AI computing can survive the loss of its founder.

Tech giants have a mixed history of replacing founding CEOs, making the new chief executive officer's prospects uncertain. November 17 remains a key date for investors to watch the company's performance.