Nvidia Shares Plunge Following CEO Departure, Hitting Multi-Year Lows

Semiconductor giant Nvidia experienced a dramatic market sell-off following the abrupt resignation of Chief Executive Officer Jensen Huang on November 12. The stock plummeted as low as $148.80 per share, down sharply from an all-time high of approximately $243 in early October. Huang's departure followed board-level investigations into two extramarital relationships, including one involving a woman with suspected ties to Chinese intelligence, though probes have not established that company secrets were compromised. Chief Financial Officer Colette Kress has stepped in as interim CEO while the board conducts a search for a permanent successor.

Despite the executive upheaval, the resulting market correction has driven Nvidia's valuation to some of its cheapest levels in over a decade. Data from Yahoo! Finance and TradingView indicate the company's forward price-to-earnings ratio has dropped to roughly 11 as of November 12. For comparison, the tech firm traded near 90 times forward earnings in late 2021. Financial performance has meanwhile remained robust, underlined by fiscal second-quarter revenue of $96.2 billion—a 106% year-over-year surge—and adjusted earnings per share of $2.22, which represents a 120% jump.

Underlying demand for artificial intelligence hardware shows little sign of cooling. Hyperscale customers like Microsoft, Amazon, Alphabet, and Meta Platforms continue pouring capital into AI infrastructure, relying heavily on Nvidia's Blackwell graphics processing units, networking equipment, and upcoming Vera Rubin architectures. Management previously issued fiscal third-quarter revenue guidance of $108 billion, plus or minus 2%, with official results scheduled for release on November 17.

What to watch next: Investors will closely monitor Nvidia's November 17 earnings report and executive search updates for signs of stabilizing leadership and sustained demand.