This Analyst Sees Huang's Resignation As Nvidia CEO As A 'One-Time Clearing Event' For Stock Market

• Kuo further suggested that the succession process is unlikely to meaningfully affect Nvidia’s product development and competitiveness before 2028. 
• He also pointed to Google’s TPU as a potential near-term beneficiary, as customers and the supply chain may place greater trust in alternatives amid the uncertainty around Nvidia leadership. 
• Nvidia’s board announced Thursday that Huang has resigned as president, chief executive officer, and a board member, effective immediately.

Shares of Nvidia (NVDA) slipped 6% on Thursday after CEO Jensen Huang announced his resignation, a move that TF International Securities analyst Ming-Chi Kuo framed as a “one-time clearing event” for the stock market.

Kuo noted that with Huang now fully separated from the company, further congressional summons or investigations should have less direct impact on the stock. He added that any effects from Huang’s future moves remain too early to assess pending investigation outcomes.

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Kuo further suggested that the succession process is unlikely to meaningfully affect Nvidia’s product development and competitiveness before 2028.

Kuo Deems Google To Be A Beneficiary Of The Fallout

He also pointed to Google’s (GOOG, GOOGL) Tensor Processing Unit (TPU) as a potential near-term beneficiary, as customers and the supply chain may place greater trust in alternatives amid the uncertainty around Nvidia leadership.

“Its (Google’s) key partners, MediaTek and Broadcom, could be the market’s near-term focus,” Kuo added.

Capacity pre-booking and specification upgrades—hallmarks of Huang’s strategy—will be key areas to monitor for any shifts across the supply chain, the analyst said. While China-related demand and export-control risks remain background concerns, Kuo argued that end demand is unlikely to disappear even under tighter rules.

Huang Resigns Amid Scandal

Nvidia’s board announced Thursday that Huang has resigned as president, chief executive officer, and a board member, effective immediately. The move follows days of scrutiny after reports that Huang had an extramarital affair with a Chinese businesswoman whom U.S. authorities suspect of links to Chinese intelligence, and a separate relationship with an Nvidia executive who reported directly to him. Reuters also reported on Thursday that he had another affair with an unnamed Nvidia employee.

Colette Kress, Nvidia’s chief financial officer since 2013, was named interim CEO while retaining her finance role. The board is initiating a search for a permanent successor and will consider both internal and external candidates. The board also appointed Harvey C. Jones, a longtime director and former Synopsys executive, as its first-ever chair.

Shares fell sharply on the news, extending losses that had already erased hundreds of billions of dollars in market value since the board investigation became public over the weekend.

Nvidia is scheduled to report earnings next week as planned. According to data from Fiscal AI, the company is expected to report revenue of $109.01 billion, coupled with earnings per share of $2.47.

How Did NVDA Retail Traders React?

On Stocktwits, retail sentiment around NVDA stock stayed within the 'extremely bullish' territory over the past 24 hours, while message volume stayed at 'extremely high' levels. According to the platform’s internal data, the retail chatter around the stock has jumped 741% in the past seven days alone.

According to an ongoing Stocktwits poll taken part in by 17,000 users, 57% of respondents said they are buying the dip after Huang’s exit, while 43% said they are not.

NVDA stock has dropped 12% year-to-date. 

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