When Jensen Huang stepped down as chief executive of Nvidia on Thursday, he left behind a company that had become the world's most valuable chipmaker—and a market suddenly unsure of what that is worth. Since its record close on 6 October, when shares ended at $239.24, Nvidia has lost roughly $1.8tn (€1.6tn) in market value. The selloff accelerated after reports of Huang's alleged infidelity and his subsequent resignation, wiping out $900bn between the previous Friday's close and Thursday's intraday low.
Huang, 63, was more than a CEO. He was the public face of the AI boom, a relentless promoter of Nvidia's chips, and the architect of a strategy that involved investing in customers and suppliers to build the ecosystem that runs on its hardware. His departure raises a central question for investors: how much of Nvidia's value was tied to him personally?
The 'Jensen premium' under scrutiny
Analysts are now trying to quantify what might be called the 'Jensen premium'—the extra value investors placed on Nvidia because of Huang's leadership. Before the resignation was announced, analysts at Yorkville Ives, led by Dan Ives, estimated Nvidia was worth $225 a share without Huang as CEO, 25% below their $300 estimate with him at the helm, as reported by Investing.com. Several brokerages have since set targets near that level: Bernstein and Baird cut theirs to $200, while Citi lowered its target to $225 from $285. Goldman Sachs, however, stood by its buy rating and $220 target, citing Nvidia's order backlog and product plans.
Kunjan Sobhani, a senior semiconductor analyst at Bloomberg Intelligence, said Huang's departure was unlikely to change earnings estimates for Nvidia's 2027 and 2028 financial years. But he pointed to longer-term risks around succession, dealmaking, and scrutiny over China, as investors reassess the premium. Huang's role, he noted, ranged from setting product strategy to managing relationships with governments and AI labs.
Colette Kress, Nvidia's finance chief since 2013, has taken over as interim CEO while the board searches for a permanent successor. Her appointment gives the company a familiar face at the helm, but the question is whether she can maintain the pace of dealmaking that helped Huang drive the AI boom. Dan Coatsworth, head of markets at AJ Bell, said: “Time will tell if investors warm to the approach while Nvidia searches for a permanent replacement. The AI industry is moving at an incredible pace and staying abreast of technology developments and spotting 'tomorrow's world' opportunities is not easy.”
At Thursday's close, Nvidia shares fell 4.3% to $166.19, near their 52-week low. At that price, the stock traded at 13.7 times expected earnings, compared with 38.9 times for rival AMD, according to Koyfin data cited by The Information. On the surface, the stock looks heavily discounted, given that demand for Nvidia's products remains high. Some analysts see a buying opportunity, but others warn that the safest bet is to wait for the dust to settle.
The broader market has also felt the shockwaves. European indices dipped as investors weighed the implications for the AI supply chain, and policymakers in Brussels have taken note. The episode has exposed the fragility of the AI boom, as economists warn that the concentration of value in a single company—and a single leader—carries systemic risks. European markets dipped as Huang's exit clouded the AI outlook, and economists warn that the boom's fragility is now visible.
What investors will watch next
Nvidia reports on Tuesday, 17 November, after the US market closes. Revenue more than doubled to $96.2bn (€86.8bn) in the quarter to 26 July, with data centres accounting for more than 90% of sales. Nvidia forecasts revenue of about $108bn (€97.5bn) for the quarter it is about to report, while analysts polled by Visible Alpha expect $109.3bn (€98.6bn).
The next quarter's sales and margin forecasts will show how much growth Nvidia expects from here and how profitable it expects that growth to be. Investors will listen for signs that cloud companies are sticking to their spending plans, that Nvidia can deliver its new Vera Rubin systems on schedule, and that its financing deals with AI customers will continue under Kress.
Tuesday's outlook will give investors a fresh basis for valuing Nvidia's earnings. Over the following quarters, the question is whether a permanent successor can keep customers and suppliers committed to the product and spending plans that drove the company's growth under Huang. As Coatsworth put it: “While the shares have been knocked for six on the spy scandal and Huang's subsequent departure from the company, no CEO is irreplaceable, and Nvidia's day-to-day business will keep ticking along. It's the long-term vision that could come under question.”
For European investors and tech policymakers, the episode is a reminder of how much of the continent's digital economy depends on a handful of American chipmakers. The EU's push for semiconductor sovereignty, including the European Chips Act, has gained urgency as the AI supply chain becomes more concentrated. Merz's call to Brussels to hold the line on other policy fronts may seem unrelated, but it underscores the broader tension between strategic autonomy and global market realities.
As Nvidia searches for a new leader, the company's value will be tested not just by its earnings, but by the confidence of investors in its ability to innovate without its founder. The 'Jensen premium' may be gone, but the question of what Nvidia is worth without him remains open.
