Address
804, 805, 8th Floor, Tower B4, Spaze I Tech Park Sec-49, Sohna Road, Gurgaon-122018 , Haryana, India.
Download Alpha Portfolio App
Download Consolidated Portfolio App
Social Media
By Alpha Research
Nov 13, 2026
NVIDIA makes the processors that power most of today’s AI. Its shares are now about 32% below their peak after a chip-sector crash, a board investigation and the resignation of founder-CEO Jensen Huang.
The Philadelphia Semiconductor Index fell about 12%, its worst day since March 2020. Reports linked the fall to fears that the new US Congress could restrict the building of data centres. The Nasdaq entered “correction” territory, a fall of 10% or more from its recent high. Nvidia fell 9.3%, less than many peers (Chart 1). This was a sector-wide scare, not an Nvidia-specific problem.
On Sunday 8 November, Nvidia’s board opened an independent investigation after reports that Huang had been targeted by a foreign intelligence effort. Huang admitted an affair with a woman whom US officials reportedly suspect of working for China’s intelligence service. The board said it had no reason to believe company secrets or national security were harmed. Nvidia shares fell by nearly 9% at one point on Monday, while rival AMD rose about 13%.
On 12 November the board accepted Huang’s resignation as CEO and director. CFO Colette Kress is interim CEO, former Synopsys chief Harvey Jones is the first independent board chair, and a search for a permanent CEO is under way. Shares fell as much as 13–14% early that day, then recovered to close down 4.3% at $166.19. That is about 32% below the 52-week high of $243.37 and about $490 billion (roughly 11%) below the 6 November close (our calculation).
In Q2 FY2027 (ended 26 July 2026) Nvidia reported revenue of $96.2 billion (up 106% year on year), Data Centre revenue of $89.0 billion (up 117%), a GAAP gross margin of 75% and GAAP net income of $59.7 billion. Data Centre is about 92% of revenue. That is a strength, but also a concentration risk, since results depend on the spending plans of a few very large customers.
In August, Nvidia guided Q3 FY2027 revenue to about $108 billion (plus or minus 2%), assuming no Data Centre compute revenue from China (Chart 3). That guidance came before the leadership change, so the 17 November results matter: investors will look for updated guidance and reassurance on customers and products.
At the 12 November close, Stock Analysis showed a trailing P/E of about 21 times and a forward P/E of about 13.7 times, with a market value of about $4.0 trillion. Both are far below recent years (Chart 4). A lower multiple makes the shares look more reasonable, but not automatically undervalued. That depends on whether earnings keep growing.
If AI spending continues and Nvidia keeps its technology lead, today’s multiple may prove reasonable. If customers slow spending or move to rival or in-house chips, earnings estimates could fall and the discount could narrow.
Risks include tighter customer spending, in-house or rival chips, power and data-centre constraints, export restrictions and financing costs. The AI opportunity is real, but timing and returns will differ across companies.
No. On 12 November the S&P 500 fell 0.35% and the Nasdaq Composite 0.39%. Part of the week’s weakness also reflected hotter-than-expected inflation data. Money mostly moved within the AI sector: AMD and Broadcom rose more than 5% as customers look for second suppliers, while Nvidia-dependent AI cloud firms fell. CoreWeave closed down about 7% after falling more than 13% earlier in the day (Chart 5).
The 17 November results will be the first update under interim leadership. After that, watch the board’s findings, the CEO search, and US policy on data centres and China. In Nvidia’s favour are strong demand, a deep software ecosystem and a lower valuation. Against it are the unfinished investigation, the lack of a permanent CEO, customer diversification and credit stress at some AI cloud companies.
Nvidia’s fall shows how sharply even a market leader can correct when expectations are high and uncertainty rises. Operating results are very strong and the long-term need for AI computing remains a key growth theme. However, the founder’s departure, the open investigation and the concentration of revenue in Data Centre make the next few announcements especially important.
Our suggestion
Written by Neeru Seal |Partner
Alpha Research
Disclaimer: The information in this document is provided for informational purposes only. It does not constitute an offer, recommendation, or investment advice. The views expressed are those of the Alpha Capital Research team and are based on current market conditions and information available publicly.
