The departure of Jensen Huang from the post of CEO of Nvidia caused a reaction on the stock exchange: the shares of the company’s competitors rose in price, while those of its partners fell, although in some cases they later recovered their decline.
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Huang’s resignation came after he admitted to a romantic relationship with a woman whom US intelligence agencies believe is working for Chinese intelligence; subsequently, information appeared about his relationships with his subordinates. Nvidia shares initially fell 14.3%, but by the end of the trading session they reduced the decline to 5.4%. Investors were apparently relieved that the company’s competitive advantages, strong demand for artificial intelligence equipment and strong customer relationships would continue despite the change in leadership.
Private investors began to actively buy the company’s shares – they purchased securities worth $111 million. However, Nvidia’s market capitalization risks falling below $4 trillion for the first time since June 2025. In the past month alone, it has lost more than $1 trillion in capitalization due to rising interest rates, high debt loads of technology companies and concerns about possible tightening of regulation.
Shares of AMD and Broadcom responded with growth, adding 5% each. SpaceX shares showed some growth: investors suggested that its CEO Elon Musk and Huang could start collaborating – Musk called such a scenario an “honor” for himself.
The decline was demonstrated by shares of non-cloud companies that are building data centers for AI. Shares of Nvidia-backed cloud provider CoreWeave fell 8.1%, although they later recovered some of the decline. Nebius, also backed by Nvidia, fell 18% after it cut its 2026 revenue forecast due to delays in commissioning third-party capacity. Shares of other non-cloud companies – IREN and Applied Digital – were trading in the red.
Supermicro shares fell 12% amid reports that the AI server maker may be the subject of a US Department of Justice investigation into the case of Alice Huang, with whom Nvidia’s CEO admitted to having a relationship. Shares of Marvell, which Huang predicted to become a trillion-dollar company, fell by 2.5%; Oracle’s decline by the end of trading was 1.2% Shares of TSMC, which produces chips for Nvidia, fell by almost 2%; shares of chip equipment manufacturer ASML also went into the “red zone”; assets of memory manufacturers Sandisk, Micron and SK hynix fell in price. Shares of Intel, whose investor is also Nvidia, sank 2%.
Nvidia shares are currently trading at 12 times the company’s expected 12-month earnings. This is the lowest figure since November 2012. The company will present its quarterly financial report next week.
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