One Decision Could Send Nvidia Stock Tumbling Another 20%: Is Jensen Huang Leaving?

One decision could send Nvidia stock tumbling another 20% if CEO Jensen Huang leaves the company. Reports of a possible leadership change have unsettled investors, adding pressure to shares already weakened by the controversy. Analysts warn that NVDA could fall toward $128 if Huang exits without a clear successor. With Nvidia’s November 17 earnings approaching, investors must consider how much of the company’s valuation depends on his leadership.

Why Is Jensen Huang’s Position Under Threat?

The uncertainty surrounding Huang intensified after reports that Nvidia’s board was considering his future following allegations involving personal relationships, including one with a businesswoman reportedly under US intelligence scrutiny for suspected links to Chinese chip shipments.

Nvidia previously said its board had confidence in Huang and launched an internal investigation with outside legal support. However, subsequent reports indicated that directors were discussing whether he should remain CEO.

Nvidia’s bylaws allow a majority of its 11 directors to remove the CEO. No final dismissal or resignation had been confirmed as of November 12. The board’s decision now represents a major governance test for the company, which Huang has led since co-founding it in 1993.

Could Nvidia Stock Fall Another 20% Without Huang?

The potential financial impact is becoming a major concern for shareholders. Gene Munster of Deepwater Asset Management has warned that Nvidia could face a roughly 20% correction if Huang leaves. Other market commentary has outlined a more severe 25%–30% downside scenario.

The concern reflects Huang’s central role in Nvidia’s transformation into the world’s leading AI chip supplier. He has shaped its product strategy, customer relationships and expansion into AI computing.

A leadership change could therefore trigger more than a temporary sentiment-driven sell-off. Investors may reassess Nvidia’s valuation if they believe a successor cannot maintain the company’s pace of innovation and execution.

History Shows Why CEO Departures Can Hurt Shareholders

Past leadership crises suggest the damage can extend beyond the initial market reaction.

• Intel shares declined 2.4% when Brian Krzanich resigned in 2018 and lost another 11.7% over the following year.
• HP suffered an 8% initial decline after Mark Hurd’s departure in 2010. Twelve months later, its shares were down 29.5%.
• Wynn Resorts initially recovered following founder Steve Wynn’s resignation in 2018, but the stock remained 19.5% lower a year later.
• McDonald’s offers a contrasting example. Its shares gained 9.6% over the year following Steve Easterbrook’s dismissal, supported by an immediate leadership transition.

The cases suggest succession planning can influence investor confidence, although broader business conditions also affected those returns.

Nvidia Stock Price Analysis: Could NVDA Fall to $128?

Nvidia stock price closed at $173.73 on November 11 before falling toward $160.18 in after-hours trading. A further 20% decline from $160.18 would take the share price to approximately $128.14. A 25% correction would put it near $120, while a 30% decline would bring it toward $112.

Technically, $158–$160 is an immediate area to watch, followed by $150 as the next downside reference. A sustained break below these levels could strengthen the bearish outlook. On the upside, $175–$180 represents the first recovery hurdle, while $200–$205 is a more significant resistance zone.