Nvidia stock hits lowest valuation since 2019 after CEO resignation
Nvidia's stock has dropped to its lowest valuation since 2019 following the unexpected resignation of co-founder Jensen Huang as CEO. The market capitalization has fallen below $4 trillion, reflecting a 14% decline in share price.
The leadership change, announced on November 12, 2026, has introduced uncertainty despite Colette Kress taking over as interim CEO. The market has reacted swiftly, with the share price initially dropping 14% before a partial recovery.
Nvidia’s valuation drop to its lowest since 2019 suggests market concerns over leadership changes.
The company's market capitalization has fallen below $4 trillion, resulting in the lowest earnings multiple seen in over seven years. This decline indicates a significant decrease in investor confidence.
Market reaction and outlook
Market pricing now suggests a lower probability of Nvidia closing above $140 by the end of November. The uncertainty surrounding the company's ability to maintain its previous valuation levels has weighed heavily on investor sentiment.
Observers are closely watching Nvidia's upcoming earnings report on November 17, which could provide clarity on whether the company meets or exceeds its revenue guidance. Any announcements regarding a permanent CEO appointment could also influence market sentiment.
Additionally, potential changes in US export policies, particularly those affecting operations in China, could further impact Nvidia's pricing outlook in the near term.
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