The Bounce Stalls as Nvidia Ousts Huang and Yields Jump
Jensen Huang’s resignation and a jump in Treasury yields on higher oil prices and a weak 30-year auction were fresh headwinds, but small caps were hit the hardest.
Huang Out at Nvidia, CFO Kress Named Interim CEO
Jensen Huang has been ousted as CEO of Nvidia ($NVDA), and CFO Colette Kress was named interim CEO, per Bloomberg. Shares added another couple percent to their losses and are down 10.6% premarket as of 9:05 a.m. ET.
Kress has been CFO for 13 years, after stints at Microsoft ($MSFT) and Cisco ($CSCO), but her public role has been limited to the numbers. Huang handled nearly all of Nvidia’s communication with Wall Street and its customers. People in the industry are floating outside names for the permanent job, including AMD’s ($AMD) Lisa Su, Arm’s Rene Haas and Micron’s Sanjay Mehrotra, per Bloomberg.
Betters on Kalshi.com though initially have Kress as the slight favorite to get the permanent job ahead of Ian Buck who runs Nvidia’s hyperscale and high-performance computing business, which sells to the biggest cloud and AI customers. He created CUDA, the software platform that keeps developers locked into Nvidia’s chips. Picking him would signal continuity on the technology and customer side, where Huang’s role mattered most. Note this is a brand-new market so it’s fairly thin, about $267,000 traded.
This leaves open the key question surrounding the deals Huang made. Bernstein’s Stacy Rasgon, who downgraded the stock overnight, cutting his price target to $200 from $400 (Nvidia’s Problem Is Bigger Than Its CEO), said the business fundamentals “are clearly still intact,” but “we wonder what will happen to the company’s myriad of investments in the space, various backstops and residual guarantees,” per Bloomberg. That’s the risk the market has been pricing overnight into CoreWeave ($CRWV), Nebius ($NBIS) and Nvidia’s other investees as discussed in Nvidia’s Selloff Ripples Down the ‘Circular Web’ of Companies It Backs as Board Weighs Huang’s Future.
Kress’s first test comes quickly. Nvidia reports third-quarter results November 17, and lawmakers still want answers on Megaspeed at the House briefing the next day.
At the time of publication, in terms of securities mentioned, Sethi was long NVDA.
Jensen Huang Debacle Weighs on Nvidia and the Market: 8 Key Items Shaping the Stock Market Thursday
Nebius and Foxconn bring more AI and data center support, signs inflation pressures remain in place and other headlines moving the market this morning.
AI Bounce Gains Momentum on Positive CoreWeave and Anthropic Updates
CoreWeave’s strong results and funding plan, along with demand for Anthropic’s IPO, gave the AI bounce another boost on a quiet Veterans Day.
Wall Street’s Painful Lesson: All Politics Is Local
For many investors and traders, Thursday’s backlash was not about the blue wave nationally, but locally. Also, how I’m handling a potential Nvidia nightmare….
The Week Ahead: CPI and Equity Flows Test a Shaken Market
After its worst week since April 2025, the S&P 500 looks to bounce back. Positioning is cleaner, but are traders ready to get back in?
Bearish Bets: 3 Tech Names to Short as Market Turns
Stocks are getting pounded post earnings and not finding too many buyers, making great short setups.
Tech Bounces, but the S&P 500 Still Has Its Worst Week Since April 2025
Tech got a bounce but finished well off the highs and most stocks slipped as yields and the dollar rose after a blowout employment report.
Weekly Roundup: Riding Out the Blue Wave Whiplash With Cash and a Shopping List
We added to three holdings, introduced two new Bullpen contenders and locked in big gains across three positions.
Stocks Surge Despite a Hidden Warning Sign That Traders Can’t Ignore
The market staged a powerful rally, but semiconductor stocks, weak breadth, and rising call buying suggest investors may be overlooking important risks beneath the surface.