Jensen Huang resigns from Nvidia... It happened faster than an AI-model rollout... Nvidia without him... Everything gets turned inside out... The political fallout begins... A 217% gain in four days... Where Doc is looking for the next AI winners...
He's out...
That's (the start of) the latest on Nvidia (NVDA) co-founder Jensen Huang...
Huang resigned as president, CEO, and board member this morning, effective immediately, after 33 years running the company he built into the world's leader in chipmaking and AI infrastructure.
Chief Financial Officer Colette Kress – a familiar voice to Wall Street from more than a decade of Nvidia earnings calls – is now the interim CEO (and will lead the company's next earnings call this coming Tuesday).
The end for Huang came faster than the rollout of a new AI model...
Late yesterday, the New York Times reported that Huang had a second affair, this one with Kimberly Powell, Nvidia's vice president of healthcare and a longtime executive who reported to him.
That's on top of his admitted affair with Alice Huang, the Megaspeed executive who U.S. intelligence officials reportedly suspect of working for China, which we wrote about on Monday.
Within an hour of the news of the second affair yesterday, the Wall Street Journal reported Nvidia's board was preparing to oust Huang. It accepted his resignation last night, according to a Securities and Exchange Commission regulatory filing today.
Nvidia put out a statement about the resignation, but it gave no reason and no word from Huang himself. The only meat in the statement was that the company will consider both internal and external candidates for the permanent job.
In the meantime, Nvidia stock has headed in one direction...
Shares fell as much as 13% in early trading – to levels last seen in June 2025 – before paring some of the losses and finishing down about 4.5%.
The company has lost roughly $1.4 trillion in market cap since October 29, when the Times released its first report about Huang's relationship with a possible Chinese spy.
The reaction is not without some reason.
Nvidia without Jensen...
On Monday, we wrote that the scandal would really only matter for the stock if Huang left or was forced out. Now, that has happened.
Make no mistake, Nvidia without Huang as CEO will be a change. He has been the face (and leather jacket) of the company – and one of the faces of the entire AI boom – for years.
On Monday, we joked that Nvidia's earnings call with Wall Street analysts next Tuesday could turn into an episode of Entertainment Tonight, given Huang's prominence in the industry.
At the time, I (Corey McLaughlin) thought it was something he and Nvidia could get through. But the second revelation – this one about an affair with a direct report – likely raised even more concerns about Huang's leadership capabilities.
Still, none of Nvidia's intellectual property walks out the door with him (even if some of its chips allegedly ended up in China). Its chip designs, its hardware, and its central role in the AI build-out are all still there.
The hyperscalers aren't going to stop buying Nvidia chips overnight.
Our colleague Whitney Tilson remains concerned, though. On Tuesday, in his free daily letter, he told readers to stay away from Nvidia's stock because he expected "many more shoes to drop."
Today, Whitney pointed to a Wall Street Journal report that Huang has roughly 60 direct reports and doesn't believe in succession planning. And Nvidia's own proxy statement warns that the company is highly dependent on its longtime executive team.
As Whitney wrote today...
I would continue to avoid the stock for two reasons. First, without Huang, the company will likely be rudderless...
Second, if the internal and external investigations officially confirm what I think is highly likely – that the company was selling billions of its most advanced chips to obvious sham companies funneling them to China – Nvidia could be in big trouble (and Huang could go to prison).
To be clear, nothing like that has been confirmed. But the reporting is moving in that direction.
The Journal has reported that U.S. and Singaporean authorities are scrutinizing Megaspeed – the company the alleged Chinese spy worked for – over allegations it shipped billions of dollars' worth of export-restricted Nvidia chips to China.
It also reports that Singapore – once listed as the source of 22% of Nvidia's revenue – practically disappeared from the company's geographic disclosures. Nvidia changed how it reports that breakdown... shortly after putting Megaspeed on an internal block list.
Short seller Culper Research made the case way back in May that Megaspeed was a front company built to get around U.S. sanctions, as Whitney noted.
As we go to press tonight, more news is breaking about Alice Huang's reported connections to Nvidia's top Chinese rival, Huawei, and an alleged third affair between Jensen Huang and another Nvidia employee.
This speaks to the bigger concern for shareholders, in my view...
Everything about Nvidia is now going to be turned inside out...
Every sales practice, internal policy, or "circular" customer agreement is about to get a long look – from investors, regulators, and Congress. The odds that more unflattering details come out? Better than zero.
Even if nothing else big turns up, people might look back at all this and think, "Well, it wouldn't have been an AI boom and/or bubble without arguably the industry's highest-profile CEO resigning."
On the other hand, it was Kress – Huang's interim replacement – who publicly confirmed last December that Nvidia hadn't finalized a much-touted deal worth up to $100 billion with OpenAI. The deal later stalled amid internal doubts.
So while new leadership could still stoke more volatility for now, Nvidia's next CEO might protect the company from taking on too much risk.
In any case, the political fallout has already started...
Even after intelligence suggested Huang's friend might be a Chinese spy, the U.S. Department of Commerce never put Megaspeed on its trade blacklist.
Republican Sen. John Kennedy told Politico there will be a congressional investigation and that Commerce Secretary Howard Lutnick needs to answer for it "in front of God and country." (Lutnick has kept a low profile since tariffs became a thing of the past, really.)
And Huang himself has agreed to testify before Congress ahead of Thanksgiving – possibly as soon as next week, the same week Nvidia reports earnings. Maybe we'll get the Entertainment Tonight episode after all.
Also today, President Donald Trump posted on Truth Social that there is "only one man" to take Huang's place: Apple (AAPL) Chairman Tim Cook. Trump was already promoting the storyline: "A Legend replaces a Legend!"
Still, the rest of the market is holding up...
If you own Nvidia shares, you're certainly not pleased with how the last few days and weeks have gone... And if you own an S&P 500 index fund, you own a lot of Nvidia, because the benchmark index is weighted by market cap, and Nvidia is one of its largest companies. Even after its latest drop, it's worth $4 trillion.
That's the concentration risk of the "market" we always warn about.
The better news?
The Invesco S&P 500 Equal Weight Fund (RSP) – which gives Nvidia the same weight as the smallest company in the index – was little changed and remains near an all-time high.
Even the market-cap-weighted S&P 500 Index and the Nasdaq Composite Index were down only slightly today as other large-cap stocks offset Nvidia's slide. Rival chipmakers Broadcom (AVGO) and Advanced Micro Devices (AMD) were each up more than 5%. And Alphabet (GOOGL) gained 2%.
Speaking of AMD... Our colleague Greg Diamond, editor of Ten Stock Trader, just closed a 217% gain on an AMD trade in four days. It's part of a textbook post-midterm-election "Doubling Window" that we've been telling you about...
That's not to say the window is closed. As Greg wrote to subscribers today after closing the trade...
Stocks can continue to move higher. If so, that's great. But with a lot of volatility happening in Nvidia (NVDA) – the CEO resigning, the stock down... and the earnings report slated for next Tuesday – I wanted to take this gain off the table.
Also today, Greg outlined a plan for two scenarios – if stocks "grind higher from here" or "if there's a pullback" – and he's ready to recommend more trades either way. To get in on his next ones, click here.
And Greg's Ten Stock Trader subscribers and Stansberry Alliance members can find his latest updates here.
The next long-term AI winners could look very different...
If nothing else, the Nvidia saga is another reason to look for the next winners of the AI boom... including ones that don't depend on a single, irreplaceable CEO.
As our colleague Nick Koziol wrote yesterday, one area where money is flowing right now is biotech. And MarketWise CEO Dr. David "Doc" Eifrig sees a big opportunity taking shape there. As Doc put it yesterday in his Health & Wealth Bulletin...
Put simply, money is flowing into biotech. We don't think this bull market is anywhere close to over.
This is especially true now that AI is driving drug development and bringing drugs to market faster.
Still, AI needs high-quality data to work. That leads me to a rare opportunity that's appearing today...
Doc has noticed a pattern in the AI boom. Every time AI runs short of something critical – computing power, then electricity, then memory – the companies supplying it have soared. Think Nvidia, Vistra (VST), and Sandisk (SNDK), respectively.
He believes he has spotted the next shortage, and the government is about to throw money at it.
Unlike chips or electricity, much of what AI needs in biotech doesn't exist yet. It can't simply be manufactured on demand. It has to be generated, one experiment and one measurement at a time.
And rather than betting on which experimental drugs succeed – most never make it to market – Doc wants to own businesses that get paid as long as the research keeps happening.
Specifically, the White House's "Genesis Mission," launched last November, aims to accelerate scientific discovery with AI. As Doc explains in a new, free presentation...
The [Trump] administration has already put more than $5 billion in federal commitments behind this program... funding 278 projects across more than 15 agencies.
And I expect a lot more of its financial muscle to get behind it soon.
The next big test comes on December 11, when Congress is expected to make a key funding decision for the mission's first full year.
As Doc says, very few people have connected the dots on this yet. Other items make for headlines – today it's Nvidia's scandal, and who knows what will take its place tomorrow. What Doc's talking about is information you can put to work in a long-term portfolio today.
Doc has identified a small group of overlooked companies that he believes could double over the next two to three years as this story plays out. To learn more from Doc about this opportunity – and how to take advantage of it – click here to watch his free presentation.
Alliance members and Doc's Prosperity Investor subscribers, feel free to watch as well, but know you can also find all the details in a pair of new special reports here.
New 52-week highs (as of 11/11/26): AbbVie (ABBV), American Financial (AFG), Berkshire Hathaway (BRK-B), CBOE Global Markets (CBOE), Disney (DIS), Descartes Systems (DSGX), GCM Grosvenor (GCMG), Intercontinental Exchange (ICE), Coca-Cola (KO), Eli Lilly (LLY), Motorola Solutions (MSI), Roivant Sciences (ROIV), Tradeweb Markets (TW), Invesco DB U.S. Dollar Index Bullish Fund (UUP), and Veralto (VLTO).
In today's mailbag, more thoughts on now-former Nvidia CEO Jensen Huang, which arrived in our inbox before news of his resignation... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.
"The shorts need to come up with some better material! Really, Jensen is going to get the boot for having sex with a Chinese spy!! That's laughable! If the board of directors are giving ANY thought to ending Jensen's great run, THEY NEED to be replaced!
"He is NVDA. There is NO REPLACEMENT that can fill his shoes! They can't kick him out without some severe aftershock to their stock price! Who is going to vote for that? NO ONE on that board with any common sense!
"The sell-off is a knee-jerk reaction that investors will regret." – Subscriber Jon M.
Corey McLaughlin comment: Well, as we pointed out today, Huang isn't alleged to have had an affair with just a suspected Chinese spy, but also with a longtime employee. (Tell us if you had this on your 2026 Investing News Bingo Card.)
The double dip of news – and likely lack of trust in Huang's leadership capabilities from here – became a business decision the company's board addressed.
All the best,
Corey McLaughlin
Baltimore, Maryland
November 12, 2026
