The delayed pricing was confirmed, but panic didn’t win either. On the day Jensen Huang resigned, Nvidia plunged to $148.80 intraday, down 14%, before closing at $166.19, down 4.34%.
An announcement on November 12 said the board had accepted his resignation as president, CEO, and director on the 11th. Kress will serve as interim CEO, and Jones was appointed the company’s first-ever chair. No reason was given.
Yesterday, the stock needed to reclaim $170.77 or higher for the panic to count as overblown. It failed to do so at the close, confirming the delayed pricing. $148.80 was the lowest since March. Buyers are betting on earnings due in five days: guidance is around $108 billion, plus or minus 2%, versus expectations of $109 billion. The numbers haven’t changed with the leadership transition.
Now it all comes down to the November 17 earnings report. If revenue meets guidance and the $164.5 billion commitment remains unchanged, the personnel issue can still be contained. But if guidance is cut or the succession plan changes, the governance discount will have to be treated as a long-term concern.
An announcement on November 12 said the board had accepted his resignation as president, CEO, and director on the 11th. Kress will serve as interim CEO, and Jones was appointed the company’s first-ever chair. No reason was given.
Yesterday, the stock needed to reclaim $170.77 or higher for the panic to count as overblown. It failed to do so at the close, confirming the delayed pricing. $148.80 was the lowest since March. Buyers are betting on earnings due in five days: guidance is around $108 billion, plus or minus 2%, versus expectations of $109 billion. The numbers haven’t changed with the leadership transition.
Now it all comes down to the November 17 earnings report. If revenue meets guidance and the $164.5 billion commitment remains unchanged, the personnel issue can still be contained. But if guidance is cut or the succession plan changes, the governance discount will have to be treated as a long-term concern.