Key takeaways
- Nvidia stock plunges 8.6% following Wednesday's closing bell
- Reports of potential Jensen Huang removal unsettle investors
- November 17 earnings become critical test for NVDA
Nvidia stock (NASDAQ: NVDA) plunged 8.6% in extended trading on November 11, falling to $158.78 as reports that the company's board was considering removing CEO Jensen Huang intensified concerns over the chipmaker's leadership.
The sharp decline erased Wednesday's 2.92% regular-session gain, which had lifted NVDA to $173.73. Shares had already fallen substantially during the previous week, reflecting growing anxiety about corporate governance, national security allegations and the sustainability of AI stock valuations.
Nvidia's November 8 board statement confirmed an independent investigation into reports that Huang had been targeted by a foreign intelligence operation. However, the company emphasized that it had no reason to believe confidential information or national security had been compromised.
Why Is Nvidia Stock Falling Today?
The latest selloff accelerated after reports that Nvidia's board was preparing to consider Huang's removal following allegations involving his personal relationships.
The company has not announced a leadership change, and Huang remains CEO. The reported board deliberations should not be interpreted as confirmation that directors have decided to replace him.
The developments represent a significant escalation from the earlier Nvidia board investigation, which initially focused on potential foreign intelligence interference.
Nvidia's independent directors have engaged outside legal counsel to investigate the circumstances. The inquiry remains ongoing, with no publicly established finding that Huang disclosed confidential information or violated export restrictions.
The latest allegations have also increased scrutiny of Nvidia's leadership succession planning, given Huang's central role in building the company into the world's leading AI accelerator supplier.
Nvidia's Market Value Faces Another Major Hit
At $158.78, Nvidia shares were approximately 23% below their November 3 closing price of $206.69, extending an earlier 9% single-session crash.
Based on approximately 24.1 billion outstanding shares, Wednesday's after-hours decline alone implied a reduction of roughly $360 billion in equity market value compared with the regular-session close.
However, extended-hours pricing can change significantly before the following session opens.
The reversal was particularly striking because Nvidia had rebounded nearly 3% earlier Wednesday as positive CoreWeave earnings helped lift semiconductor sentiment.
The renewed weakness also follows Wall Street's reassessment of Nvidia's outlook, including Bank of America's removal of the company from its preferred stock list and Wells Fargo's reduction of its price target to $300.
What Happens Next for NVDA Stock?
Nvidia's immediate outlook now depends on both leadership developments and its upcoming earnings announcement.
The company is scheduled to report fiscal third-quarter results on November 17, with management previously forecasting approximately $108 billion in quarterly revenue.
Nvidia's second-quarter revenue reached $96.2 billion, including $89 billion from its data-center segment, demonstrating the scale of demand for AI infrastructure.
Nevertheless, strong operating results may not immediately resolve investor concerns about executive stability.
The company's recent divergence from other technology stocks suggests investors are increasingly distinguishing Nvidia-specific governance risks from broader AI demand.
