Nvidia falls 4% after Huang’s Thursday exit amid espionage affair

By Elena Vasquez

Nvidia shares closed 4% lower after Jensen Huang resigned as chief executive on Thursday, following a session in which the stock lost double digits and traded below $150 for the first time since mid-2025. Competitors gained as the leadership shock coincided with a fresh dispute over US controls on AI-chip exports to China.

At the session low, shares of the leading AI-chip developer traded below $150 for the first time since mid-2025. Nvidia had reached a record $243.37 in early October, and the subsequent retreat amounted to almost one-third. Investors recovered part of the decline, but the stock remained down 4% at the Nasdaq close.

What drove Huang’s departure?

Two personal controversies preceded the resignation. US authorities suspect Alice Huang of spying for China, and US media reported that Jensen Huang also had a relationship with a senior Nvidia manager.

On November 8, after first reports of his connection to Alice Huang, Jensen Huang admitted an affair without naming the woman. He stepped down Thursday, after which chief financial officer Colette Kress took charge on an interim basis. Nvidia, long treated as a one-man show under Huang, is also considering other candidates for the permanent role.

Who cut targets, and who benefited?

Before Huang announced his resignation, analysts had reassessed Nvidia shares. Citigroup, JPMorgan and Bank of America cut their price targets substantially.

The timing shows that the leadership news added to an existing reassessment rather than solely triggering it. Investors entered the session already weighing a less favorable view of Nvidia’s stock, then received a company-specific reason to reconsider their positions.

AMD shares rose 5.9%, and Broadcom gained 5.5%. Investors used the session to position for potential future market-share gains at both chipmakers as Nvidia’s leadership changed. The contrast with Nvidia’s 4% close shows that the session was not a general semiconductor sell-off.

How did the broader market react?

Technology shares accounted for the main index losses:

• The Dow Jones Industrial Average closed down 0.36% at 52,297 points.
• The S&P 500 fell 0.35%.
• The Nasdaq Composite lost 0.39%.

Gains in the energy sector could not offset the technology declines. Each major US index fell by less than 0.4%, against single-day gains above 5% for the two Nvidia competitors. That gap indicates investors treated Huang’s exit as a company-specific shock rather than a broad retreat from technology.

What is the export-control fallout?

The espionage case is now reaching beyond Nvidia. White House insiders say officials are discussing replacing Commerce Secretary Howard Lutnick.

A growing number of lawmakers accuse Lutnick of not controlling AI-chip exports to China strictly enough. They also fault the Trump administration for refusing to place dozens of Chinese companies on an important trade blacklist.

A government representative said President Donald Trump has “full confidence” in Lutnick. For AI-chip suppliers, that leaves two policy questions open: who will manage US commerce policy, and whether Washington will tighten exports or expand the blacklist.

What changes for investors?

Kress now leads Nvidia during the transition while the search for a permanent successor continues. The immediate market signal is split: Nvidia closed down 4%, AMD and Broadcom each gained more than 5%, and three large banks lowered price targets. That combination puts management continuity and China export enforcement alongside competitive positioning in the next round of valuation decisions.