Nvidia Shares Slump After CEO Resignation, Prompting Fresh Look at Rival AMD

Nvidia shares have faced a tumultuous period following the Thursday morning resignation of co-founder and CEO Jensen Huang. According to reports, Huang stepped down after news emerged regarding personal relationships, leaving CFO Colette Kress to serve as interim chief executive. The abrupt departure of a leader who defined the company for decades has sparked shareholder anxiety over the tech giant's immediate future, even as financial fundamentals remain robust.

Financial Comparison: Growth and Scale

While Nvidia grapples with leadership uncertainty, rival Advanced Micro Devices enjoys strong momentum, fueled by surging data center sales. AMD reported a 97% year-over-year increase in third-quarter data center revenue to $8.5 billion, bringing total revenue to $13.4 billion with a 45% overall growth rate. However, AMD's numbers remain dwarfed by Nvidia, which previously posted fiscal second-quarter data center sales of $89 billion—up 117% year-over-year—and total revenue of $96.2 billion.

Valuation and Outlook

Despite Nvidia's leadership vacuum, management previously issued guidance projecting 70% revenue growth for fiscal 2028, supported by advance orders from artificial intelligence hyperscalers. When evaluated on expected earnings for next year, AMD trades at roughly three times the valuation multiple of Nvidia, creating a stark pricing mismatch. Analysts note that Nvidia's established pipeline and lower relative valuation metrics suggest the stock remains a compelling growth opportunity, provided the board secures a capable permanent successor.

What to watch next: Nvidia is scheduled to report its fiscal third-quarter results on November 17, which will provide the first official update on business health following the executive transition.