Nvidia shares fall 13% below $4T as Colette Kress named interim CEO
- Nvidia shares dropped more than 13% following the resignation of CEO Jensen Huang.
- The company's market value has fallen below $4 trillion.
- Seven brokerages downgraded Nvidia from buy-equivalent ratings.
- CFO Colette Kress has been named the interim CEO.
- Analysts cite increased leadership and execution risk following Huang's departure.
Nvidia shares plummeted more than 13% at the market open on Thursday, November 12, 2026, following the resignation of CEO Jensen Huang.
The company’s market valuation fell below $4 trillion as CFO Colette Kress was appointed as interim CEO.
This leadership change triggered a broad wave of downgrades from financial institutions.
Market value falls by $740 billion
The company has seen a total decline of approximately $2 trillion since its peak in October.
Following a wave of broker downgrades, the share price fell another 11%, leaving the stock down 27% from its early-October peak.
Brokerages issue wave of downgrades
Several of these institutions roughly halved their price targets for the stock.
Raymond James maintained a Strong Buy rating with a $515 price target.
Cantor Fitzgerald reduced its target from $350 to $250 in a note titled "A Very Sad Day".
BMO maintained an Outperform rating with a $240 target, while Morgan Stanley kept an Overweight rating at $300 while removing Nvidia from its list of top picks.
Analysts assess leadership and execution risk
Bernstein analyst Stacy Rasgon said the downgrade resulted from leadership risk rather than business weakness, noting that business fundamentals remain intact. Rasgon described the shares as "almost absurdly cheap".
KeyBanc analyst John Vinh said Huang's departure creates a material increase in execution, strategic, and organizational risk. This warrants a lower valuation multiple and a higher risk premium for the company.
Oppenheimer said the board acted because Huang was the "face of AI" and his leadership was critical. Rick Schafer of Oppenheimer said reports of a second relationship involving an Nvidia executive acted as a "one-two" punch that forced the board to act. Schafer expects business fundamentals to be secondary in the near term. There is no obvious successor and massive shoes to fill, according to Oppenheimer.
Sebastien Naji of William Blair said the exit and resulting scrutiny will create a "significant overhang on NVDA shares in the near term". The firm is waiting for the situation to stabilize before reassessing.
Ben Reitzes of Melius Research said the firm decided to step aside, comparing the current situation to Hewlett-Packard in 2010.
Tristan Gerra of Baird titled a research note "Icarus' Rise and Fall; Company Will be Fine". Gerra predicted the stock would remain in a trading range until the situation settles.
Future outlook and internal stability
Dan Ives of Yorkville Ives described the situation as a "black eye moment" for the company and the former CEO. Ives established two valuations for Nvidia at $300 per share with Jensen Huang as CEO and $225 without him.
Ives said Nvidia remains the "clear leader" in AI chips and noted his firm was not downgrading the shares.
Nathan Thooft of Manulife Investment Management said Nvidia possesses depth beyond its former CEO. Thooft highlighted the talent of the company's 40,000 employees.
Frequently Asked Questions
- Nvidia Hit By Seven Downgrades In 24 Hours As Jensen Huang's Exit Rattles Wall Street (ndtvprofit.com)
- Nvidia hit by Wall Street downgrades as Jensen Huang departs (businessinsider.com)
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