Nvidia extends slide as Huang ouster rattles AI trade

Nvidia ↘ 2.01% shares fell again in early trading on Friday, November 13, adding to Thursday's losses. Investors are still working out what Jensen Huang's abrupt exit means for the company at the center of the artificial intelligence boom. The stock was down about 3.5% shortly after the open, which pulled the Nasdaq Composite to its session low, NDTV Profit reported. The selloff spread to chipmakers and Chinese AI stocks across Asia. Still, many analysts expect demand for Nvidia's processors to keep running ahead of supply.ndtvprofit.com

A week of upheaval

On Thursday, the board said Huang had stepped down immediately as president, chief executive and director. Chief Financial Officer Colette Kress became interim CEO, and the board said it would look at internal and external candidates for the permanent job, AFP reported. AFP described the departure as following a "board revolt" over revelations that Huang had two extramarital affairs, one of them with a woman accused of spying for China. Nvidia's statement did not link the exit to those revelations, according to Sharecast News.fidelity.co.uk+1

The crisis started on November 8. That day the board opened an independent investigation into whether Huang had been "the target of a foreign intelligence effort," saying it had no reason to believe national security or company secrets had been compromised, Reuters reported. On Thursday the stock fell as much as 14% before buyers stepped in, and it closed down 4.3%, according to Bloomberg. It has now fallen more than 30% from its October record. Its forward price-to-earnings ratio is near 12, the lowest since 2012, NDTV Profit noted, citing Reuters.reuters.com+2

Asia feels the shock

In Asia, technology shares gave up early gains on Friday. South Korea's Kospi reversed course, and memory chipmakers turned lower, Investing.com reported. Tencent and Kuaishou both declined. Investors worried that US policymakers could close a loophole that lets Chinese AI developers use Nvidia chips in offshore data centers. Hong Kong's Hang Seng closed 1.5% lower, and the Shanghai Composite also fell, RTHK reported. Japan's Nikkei 225 bucked the trend and closed higher.investing.com+1

Demand outlook faces a test

Analysts have mostly kept their forecasts for strong earnings growth. Nvidia reports third-quarter fiscal 2027 results on Tuesday, November 17. Analysts tracked by LSEG expect revenue to rise 92% from a year earlier, NDTV Profit reported. Citi's Jon Zauderer said rivals such as AMD Advanced Micro Devices, Inc. ↘ 8.75%, Arista ↘ 4.52% and Broadcom ↘ 4.76% could benefit from the turmoil, RTHK reported.gbcode.rthk.hk+1

"An abrupt exit without a credible succession plan could force investors to reassess how much of Nvidia's future depends on Huang personally," Saxo Markets strategist Charu Chanana wrote, AFP reported.afp.com