The semiconductor giant Nvidia is facing a historic downturn as its stock plummeted for the sixth consecutive week, marking its worst losing streak since 2012. This downward spiral has wiped approximately 1.7 trillion dollars from the company’s market capitalization, causing it to lose its crown as the world’s most valuable firm to Apple. While investor sentiment had already begun to sour recently, the selloff accelerated sharply following a series of personal scandals involving longtime leader Jensen Huang.
The turmoil reached a breaking point on Thursday when Huang resigned as CEO after reports surfaced regarding two extramarital affairs, including one with an employee and another with an alleged Chinese spy. Following a frantic board meeting sparked by revelations in The New York Times, the company appointed Chief Financial Officer Colette Kress as interim CEO. The sudden exit of the co-founder, who had become a prominent figure in both tech and political circles under President Donald Trump, left shareholders reeling and caused shares to dive 13 percent this week alone.
Beyond the leadership crisis, broader economic and political headwinds have compounded the losses. Recent midterm election results saw Democratic victories that may lead to regulations slowing the rapid expansion of artificial intelligence infrastructure. Additionally, persistent concerns over rising interest rates have pressured the wider AI sector, particularly affecting those debt-reliant customers who fuel Nvidia’s massive demand. Together, these factors created a perfect storm that erased nearly 30 percent of the company’s value during this recent slump.
Attention now shifts to Colette Kress as she prepares to steer the company through its upcoming quarterly earnings report on Tuesday. Although analysts expect staggering revenue growth—projecting figures around 108.9 billion dollars—there is widespread skepticism about whether financial strength can outweigh the current instability. Industry experts warn that while the fundamentals remain strong, the shadow cast by Huang’s departure will likely keep investors cautious for several months to come.