Nvidia co-founder and former CEO Jensen Huang stepped down from his role this week following revelations of an extramarital affair with an alleged Chinese spy and a direct report. The news triggered a sharp sell-off in Nvidia’s stock, which fell 13% over the past week and 6% since Wednesday’s market close. At its peak, Nvidia had a market cap of $5.8 trillion, but it closed Friday at $3.93 trillion.
Despite Huang’s departure, analysts argue that Nvidia’s business remains strong. The company’s technology is best-in-class, and its leadership pipeline is deep enough to ensure continuity. Apple’s history of smooth leadership transitions is cited as evidence that Nvidia can weather this storm.
Nvidia has already provided guidance for 70% revenue growth in 2027, a projection that is unlikely to change due to Huang’s resignation. The company’s product development pipeline is set for years in advance, meaning future innovations will still reflect Huang’s influence. Additionally, Nvidia’s stock now trades at about 10 times next year’s earnings estimates, a bargain for one of the world’s most dominant companies.
While the market may take a few months to recover from the shock of Huang’s departure, the long-term outlook for Nvidia remains positive. Investors who focus on the company’s technology and market position rather than its leadership changes may find significant upside in the coming months.