Nvidia heads for longest weekly losing streak since 2012 after $1.6 trillion market-value loss
Nvidia was heading toward its sixth consecutive weekly decline, which would be the company’s longest losing streak since 2012. As of Thursday’s close, the shares had fallen 29% from their recent peak, wiping out roughly $1.6 trillion in market value and pushing Nvidia below Apple after it had spent much of the year as the world’s most valuable company.
The sell-off intensified after Jensen Huang resigned as chief executive on Thursday. Huang, Nvidia’s co-founder, had led the company for 33 years and stepped down after two separate extramarital affairs became public, including one involving an alleged Chinese spy and another involving a company employee. The board appointed finance chief Colette Kress as interim CEO while it searches for a permanent successor. Nvidia shares dropped 4.3% on Thursday, bringing their weekly loss to 11%.
The leadership crisis came after broader concerns had already weighed on the stock. Nvidia fell about 9% the previous week following midterm election results and ballot measures that could slow the expansion of artificial-intelligence infrastructure. Earlier, investors had also worried that higher interest rates could hurt debt-dependent companies supporting the AI boom, even though Nvidia itself remains highly profitable.
Attention now turns to the company’s quarterly results, due Tuesday. Analysts surveyed by LSEG expect revenue of $108.9 billion, up 91% from a year earlier and roughly 18 times the level recorded in the comparable quarter of 2022, before ChatGPT accelerated the generative-AI industry. Analysts expect strong results but warn that Huang’s departure may keep pressure on the shares and overshadow the company’s underlying performance in the near term.
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