Nvidia Faces Governance Risks as Shares Fall 7.8% After Hours
Nvidia fell 7.8% in after-hours trading on November 11 after a report that its board is preparing to oust CEO Jensen Huang. About $427 billion in market value has vanished over two sessions, while AMD and Broadcom shares rose.
Nvidia shares fell 7.8% in after-hours trading on Wednesday, November 11, 2026, after a report that the board is preparing to oust CEO Jensen Huang. The chipmaker now faces governance risks that have already erased about $427 billion in market value over two sessions.
Shares of rivals AMD and Broadcom rose. Investors see both as possible beneficiaries of a prolonged governance crisis at their biggest competitor.
The turmoil began with allegations about Huang's personal conduct. Huang admitted an affair with an executive at Megaspeed, a Singapore data-center company that is a large Nvidia customer. US intelligence reportedly suspects the executive of being a Chinese intelligence asset.
Nvidia's board has opened an investigation, and President Donald Trump said the FBI is looking into the matter. Nvidia says it has "no reason to believe" that secrets were compromised.
Analysts react
Baird downgraded the stock to neutral. Morgan Stanley dropped it from its Top Pick list, and BofA removed it from its U.S. 1 List.
Nvidia has no succession plan. Dan Ives of Yorkville values the company at $300 a share with Huang and $225 without him.
Nvidia closed Wednesday at $173.73, giving it a market cap of $4.20 trillion. The stock is down 23.2% over the past month.
Earnings next week
Nvidia reports results on November 17. Consensus expects $108.8 billion in revenue and earnings of $2.47 per share. The company beat estimates on both lines in its last two quarters, and earnings-per-share revisions are up 5.2% over 90 days.
Revenue grew 65.5% last fiscal year to $215.94 billion, with a gross margin of 71.1%. Wells Fargo still expects a revenue beat. The discount on the shares reflects governance and China risk rather than weaker fundamentals, the analysis said. The danger is that a CEO exit or new China export controls hit a stock already sharply lower.
AMD and Broadcom gain
AMD closed at $552.90, up 36.7% in a week and 152.6% this year. It beat third-quarter estimates on November 3, with earnings of $2.09 per share against $1.94 expected, and the stock rose 4.7%. It remains about 16% below its $658.52 high.
Broadcom closed at $345.22, up 18.4% in a week but down 2.1% this year. It sits about 30% below its $495 high. Its next report is due December 9.
The analysis called the rise in both stocks a rotation, not a new thesis, because hyperscaler budgets, not Nvidia's headlines, set AI spending. Both also rallied with the whole chip sector after a steep selloff.
