Nvidia shares drop 14% as Jensen Huang resigns; AI sector faces leadership test

Nvidia shares fell sharply after Jensen Huang's resignation as president and CEO, dropping up to 14.3% intraday before closing 4.3% lower at $166.19 on Thursday. The leadership change raises questions about the company's growth plans and could impact sentiment across the AI sector. Colette Kress, Nvidia's CFO, has taken over temporarily while the board searches for a permanent successor. The resignation followed an independent investigation into reports that Huang may have been targeted by a foreign intelligence operation, though Nvidia stated no national security or company secrets were compromised. Competitors AMD and Broadcom rose 5.9% and 5.5% respectively, suggesting investors may be rotating within the AI sector. Nvidia's third-quarter earnings on November 17 will be a key test, with analysts watching demand, margins, and strategic continuity under the new leadership.