Nvidia Stock Falls 33% as Jensen Huang Exits CEO Role Before Earnings

Nvidia shares dropped 33% after Jensen Huang resigned as chief executive on Wednesday night, capping a week of turmoil that began with his admitted affair with an alleged Chinese spy. The collapse lands days before the company's third-quarter earnings report, and it turns a routine results release into a test of investor nerve.

The numbers frame the problem. A stock that traded near $200 now sits in a range where technical analysts identify resistance between $164 and $200. On the downside, the critical support zone runs from $146 to $153. Momentum indicators show oversold conditions, which historically often precede a period of stabilization rather than further free fall.

What happened to the leadership?

Huang's departure followed two linked shocks. First came his admitted affair, reportedly with a person alleged to be a Chinese spy. Then came the resignation itself, announced Wednesday night. The combination removed the founder who built Nvidia into the dominant supplier of AI accelerators, and it did so in a way that invites questions about judgment at the top rather than about the product line.

No successor, interim arrangement, or board statement appears in the source material, so the leadership picture beyond Huang's exit remains open. What is confirmed is the market reaction: a 33% decline and heightened volatility heading into the Q3 report.

What do the charts show?

Technical analysis of the stock points to three concrete levels:

• Support at $146 to $153. This is the floor buyers have defended, and the line that separates a correction from something worse.
• Resistance at $164 to $200. After the recent decline, this band now marks where sellers are likely to reappear on any rebound.
• Oversold momentum readings. These suggest the selling has been intense enough that stabilization, not continued collapse, is the more common next step.

The analyst view is explicit about the asymmetry. Prudent risk management remains essential, the analysis notes, given the volatility and the potential for further downside below $146. In plain words: the chart offers a case for buying, but only with a clear idea of where the thesis breaks.

Why does the analyst still rate Nvidia a Buy?

The author of the analysis, who discloses no position in Nvidia stock or derivatives and no plans to initiate one within 72 hours, reiterates a Buy rating on the shares. The argument rests on valuation and growth rather than on confidence in the outgoing chief executive.

Nvidia trades at 14 times its next-twelve-month earnings estimate, a multiple the analyst considers attractive given the company's forecast trajectory. The source cites robust top-line and bottom-line growth projections running through fiscal year 2028. In other words, the revenue engine behind the stock — AI chips and the data center demand they serve — is expected to keep compounding for years, whatever the noise at the top.

The argument, reduced to its core: a leadership scandal cut the price by a third without, so far, cutting the earnings power.

What should investors watch now?

The immediate catalyst is the Q3 earnings report, which arrives amid the volatility the resignation triggered. Two levels will tell the story. A hold of $146 to $153 would confirm the oversold-stabilization thesis and support the case for adding to positions through year-end, which the analyst describes as favorable. A break below $146 would invalidate that floor and open the door to deeper losses, the reason the analysis insists on disciplined position sizing.

The disclosures attached to the analysis carry the usual weight for readers weighing it. Past performance does not guarantee future results, and neither the author nor the publishing platform is offering individualized investment advice. The author is a third-party contributor, one of a pool that includes both professional and individual investors who may not hold licenses or certifications.

The takeaway is simple. Nvidia enters its earnings print with a damaged leadership story, a 33% lighter share price, a defended floor at $146, and a growth forecast that one analysis still considers worth 14 times forward earnings — and whether that floor holds will decide if the Buy case survives the quarter.