NVIDIA shares plunged in the US market after CEO Jensen Huang announced his resignation, falling about 12% at the open. Buying returned thereafter, and the stock traded around $164, down about 31% from its recent record-high level.
NVIDIA CEO Jensen Huang was reported to have resigned. In US trading, the stock opened down about 12% from the previous day's close following the resignation announcement and was at times trading around $164. It is currently down about 31% from its trailing 12-month closing-price high.
NVIDIA's operating margin for the trailing 12 months was 65.2%, a high level relative to the past 10 years. However, as of August, the company indicated that it expected its full-year gross margin to bottom out at 71%–72% in response to memory-price trends. The price-to-earnings ratio is near its recent low, but given that margins are at peak levels, the extent to which the stock is undervalued is difficult to assess conclusively.
From the market's perspective, management's revenue forecast for the third quarter of fiscal 2027 is $108 billion, while analysts expect approximately $111 billion. Some say this would not reach the upper end of the company's forecast. Against this backdrop, the balance of risks and opportunities that the stock should price in is reportedly the focus.
The outlook includes the fact that the company will release earnings in Mr. Huang's absence. Additional earnings trends and the impact of the CEO change are expected to remain areas of market focus, according to reports.