Nvidia Plunges 14% at Open to Near 18-Month Low: Jensen Huang Resigns Immediately as CEO, Multiple Investment Banks Cut Ratings and Price Targets

TradingKey - On November 12, Eastern Time, Nvidia (NVDA) plunged 14% at the open to hit a low of $148.8, its lowest level since late June 2025, before gradually paring losses. Earlier, the company's board of directors announced that Jensen Huang had resigned as president, chief executive officer, and director, effective immediately. Executive Vice President and Chief Financial Officer Colette Kress was appointed interim CEO while continuing in her existing role.

Jensen Huang's departure has turned market concerns over leadership stability into reality. Investors need to reassess whether the succession team can sustain the company's technology strategy, customer relationships, and business execution capabilities. Such uncertainty may first impact the valuations the market is willing to grant, before gradually being reflected in assessments of orders and earnings.

Nvidia stock chart, Source: TradingView

The board emphasized that company operations, customer commitments, and product roadmaps are not expected to be disrupted. Kress has served as Nvidia's chief financial officer since September 2013, participating in the company's growth and transformation. She stated that she will work with the management team to continue advancing the accelerated computing and AI businesses, serving customers, partners, and shareholders.

However, Wall Street has begun lowering valuation expectations for Nvidia. Since November 10, Citi first lowered its price target from $315 to $285, and subsequently cut it further to $225; RBC lowered its price target from $330 to $230.

Bernstein downgraded the stock from "Outperform" to "Market Perform," cutting its price target from $400 to $200; Baird downgraded its rating to "Neutral," lowering its price target from $500 to $200. Bank of America, Stifel, Mizuho, and Wells Fargo have also successively lowered their price targets.

Investor Michael Burry expects Nvidia's upcoming earnings report will still be "outstanding," but believes the leadership crisis could affect the financing arrangements and customer transactions that support growth, while rising customer bargaining power and regulatory risks could also pressure profit margins.

Nvidia is scheduled to release its third-quarter fiscal 2027 financial results as planned on November 17, Pacific Time. Beyond the current quarter's performance, how management addresses the leadership transition, customer partnerships, and subsequent business outlook will be critical for the market to judge whether this adjustment affects growth expectations.