Nvidia Stock Has Wiped Out $1.7 Trillion in Value Since October. What Could Happen If Jensen Huang Steps Down?
A board investigation, an FBI review, and a shareholder lawsuit have investors asking a new question about Nvidia: what the company looks like without its founder.
Since October, Nvidia's stock has plummeted by $1.7 trillion, raising questions about what could happen if CEO Jensen Huang steps down. In October, Nvidia's value was about $5.78 trillion, dropping to $4.04 trillion by early November, a 30% decrease. CEO Jensen Huang recently acknowledged an extramarital affair, which has sparked a board investigation into claims he was targeted by foreign intelligence.
Although no evidence suggests national security or Nvidia secrets were compromised, shareholders filed a proposed class action claiming the relationship was misleading. President Trump noted the FBI is investigating, though he expressed confidence in Huang. Analysts acknowledge a key-man risk following Huang's potential departure but maintain confidence in Nvidia's underlying business and AI demand.
Wall Street has cut Nvidia's price target and removed the stock from its top investment list, suggesting a 25% chance of Huang leaving. Nvidia's business appears robust with strong revenue growth, but the lack of a clear successor raises concerns about long-term strategy and relationships with key customers. The outcome will likely depend on the board's findings and Huang's role in shaping Nvidia's future direction.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
