Nvidia shares were down more than 6% on Tuesday 10 November, taking the chipmaker’s loss of market value since the weekend to more than $400 billion, Le Monde reported. The decline was recorded at about 18:40 Paris time, after Nvidia’s board announced on Sunday that it was investigating chief executive Jensen Huang’s relationship with a woman. The decline briefly put Microsoft ahead of Nvidia by market value.
Key points
- Nvidia’s market value has fallen by more than $400 billion since the weekend, Le Monde reported.
- Microsoft briefly moved ahead of Nvidia, with both companies valued at just under $4 trillion.
- Citi and Wells Fargo reduced their Nvidia price targets while retaining buy and overweight ratings, respectively.
- An analyst said investor discussions put the chance of Huang leaving as chief executive at roughly 15%.
Microsoft briefly moves ahead of Nvidia
Microsoft’s move ahead of Nvidia was temporary, Le Monde reported. Both companies were valued at just under $4 trillion, while Apple remained above $5 trillion. Nvidia had not ranked this low by market value since 2025, according to the newspaper.
Nvidia shares fell 4.2% on Monday 9 November, wiping out almost $200 billion in market value, NBC News reported. Investor’s Business Daily put Monday’s decline at 4.3% and the closing price at $178.67.
Monday’s wider market moved in the opposite direction. The Nasdaq 100 rose 3.4%, the S&P 500 gained 2.3% and the Dow Jones Industrial Average added more than 1,100 points, NBC News reported. AMD, Qualcomm, Taiwan Semiconductor and Intel also rose. Nvidia posted the biggest decline among stocks in the Dow and the S&P 500.
Nvidia had already fallen 10% between the close on Thursday 5 November and the close on Friday 6 November, before the Sunday board announcement, WMTW reported. Other AI chipmakers also declined during that period. Nvidia makes GPUs for data centres, which account for the bulk of its revenue, the broadcaster reported.
Citi and Wells Fargo lower Nvidia targets
Citi analyst Atif Malik cut his Nvidia price target to $285 from $315 on Tuesday while keeping a buy rating, Investor’s Business Daily reported. Wells Fargo analyst Joe Quatrochi reduced his target to $300 from $315 and retained an overweight rating. Both revisions lowered the analysts’ estimates of where the shares could trade without changing their positive ratings.
Malik called the board-led inquiry “an overhang” on the shares and said it could overshadow Nvidia’s forthcoming quarterly results and guidance. Bernstein analyst Stacy Rasgon described the allegations concerning Huang as a significant “key-man risk”, according to Investor’s Business Daily. Those assessments centre on Huang’s continued role at a company whose shares have lost more than $400 billion in market value since the weekend.
Yorkville Ives analyst Dan Ives said investor discussions assigned roughly a 15% chance to Huang’s removal as chief executive and an 85% chance that he would stay. Ives expected the board’s investigation to take four to six weeks. He said Nvidia and its shares would be worth 25%-30% less if Huang left, while maintaining an outperform rating and a $300 price target.
Shareholder lawsuit follows board inquiry
Nvidia said on Sunday that independent directors and legal counsel would oversee its investigation, NBC News reported. Huang acknowledged an extramarital relationship in a note to employees, according to the broadcaster. An Nvidia spokesperson said Huang was committed to remaining chief executive without interruption. AI Affairs previously reported the board’s investigation and an earlier fall in Nvidia shares.
The Rosen Law Firm filed a proposed class-action lawsuit against Nvidia and Huang in federal court in San Jose, California, Investor’s Business Daily reported. The suit alleges that they misled shareholders about his relationship. It adds a separate shareholder claim to the board inquiry while analysts assess the potential effect of Huang’s departure on the company’s valuation.
Nvidia will report its fiscal third-quarter results and guidance on 17 November, according to Investor’s Business Daily.
