NVIDIA (NVDA) Market Cap Slips Below $4 Trillion After Jensen Huang Exit

Colette Kress Takes Interim Role

NVIDIA (NVDA) closed down 2.01% in Friday's New York session on 13 November, a second straight drop that pushed the chipmaker's market capitalization below the $4 trillion level. The slide began when founder and chief executive Jensen Huang resigned over a personal-life controversy, and the shares had already lost more than 4% in the prior session as the news landed. The company is now operating under interim leadership: Colette Kress, the chief financial officer who has spent more than a decade at the company, has stepped into the interim chief executive role while the board searches for a permanent successor among internal and external candidates. The board has not disclosed a timeline for the appointment.

Live COINOTAG data puts NVIDIA at $161.29, down 3.9% over the past 24 hours after a session range of $158.69 to $171.88. The daily trend reading is a downtrend, with the 14-day relative strength index at 26.1 and the stock trading below its 200-day moving average. COINOTAG's composite scoring rates the nearest overhead resistance at $170.23 with a score of 81 out of 100. Advanced Micro Devices (AMD) stands at $523.20, down 10.3% over the past 24 hours, and holds above the $497.28 support level scored at 83 out of 100. Perpetual futures tied to NVIDIA carry $456.2 million in open interest at a funding rate of 0.037%.

The succession gap is what the market is pricing. HSBC and other major investment banks cut their price targets on the stock, and HSBC lowered its recommendation to hold, arguing the shares could remain stagnant until a succession plan becomes visible. Thomas Martin, a senior portfolio manager at Globalt Investments, said choosing a successor could take considerable time and flagged uncertainty around the company's existing financial contracts and its supplier and customer relationships in the meantime. Traders also weighed regulatory uncertainty around the business alongside the leadership vacuum, leaving the stock without a clearing event on the horizon. Friday's 2% drop set the tone for the semiconductor complex and kept selling pressure on the broader AI trade intact through the close.

AMD and Broadcom Give Back Reversal Gains

The wider New York session split around the selloff. The Dow Jones Industrial Average added 50.46 points, or 0.10%, to 52,347.55, the only major index in the green, while the S&P 500 lost 30.73 points (0.40%) to 7,561.67 and the Nasdaq Composite dropped 229.82 points (0.91%) to 25,136.27. The Russell 2000 exchange-traded fund slipped 0.30% to 277.60. Earlier in the session, the October producer price index released by the Labor Department rose 0.3% on the month, under the 0.4% economists had expected, though the annual pace reached 6.5%, the fastest since November 2022. Guardedness over the Federal Reserve's December rate path kept Treasury yields higher, with the 10-year note adding 2 basis points to 5.15%, and the dollar index climbed 0.23% to 103.41. The damage was concentrated in chips and AI infrastructure. The Philadelphia Semiconductor Index fell 3.43%. Broadcom dropped 4.76% and AMD 8.75%, after both names had surged the previous day on expectations they could gain from NVIDIA's turmoil. SK Hynix's US-listed receipts lost 4.30% and Micron fell 2.52%. CoreWeave shed 6.13% and Nebius 9.92% as the cost of expanding AI infrastructure weighed on the neocloud and server-equipment group. Apple rose 0.35% to an intraday record, with traders treating its distance from the high-cost AI infrastructure race as a haven, and the stock helped cushion the indexes. Bitcoin fell 3.9% and dropped below the $70,000 level, echoing the risk-off tone across technology. Ross Mayfield, an investment strategist at Baird, said the semiconductor group had been under pressure over profitability relative to AI investment even before the NVIDIA event, and expects the rotation out of AI-linked names and into non-AI sectors to continue. The weekly trend stayed positive despite Friday: the Nasdaq gained about 2% for the week, the S&P 500 more than 2% and the Dow roughly 2%.