SANTA CLARA, Calif. — Nvidia is on track for a sixth straight weekly decline, its longest losing streak since 2012, after shedding about $1.6 trillion in market value, CNBC reported Friday, Nov. 13.
Related: Nvidia CEO Huang resigns as shares plunge 13% at the open.
The slide
The stock has lost 29% over the stretch, measured through Thursday’s close, and Nvidia has fallen below Apple in market value. Shares dropped 4.3% on Thursday, bringing the week’s loss to 11%.[1]
Shares were up 1.7% in premarket trading at 8:13 a.m. ET Friday.[3]
The selling began before this week. The stock fell about 9% last week, much of it after the midterm elections, and had slid earlier with other AI shares on worries about rising interest rates.[1]
The leadership change
Co-founder Jensen Huang resigned as chief executive on Thursday after reports about his personal conduct, and the board named finance chief Colette Kress interim CEO while it searches for a successor.[1] Our earlier story covers the resignation, and a Senate panel has asked Huang to testify.
D.A. Davidson analyst Gil Luria cut his price target to $200 from $300 and kept a buy rating, writing that he expects “a challenging transition” over the next few months, CNBC reported.
Rivals gain
Investors have moved into other chip designers. AMD is up 30% this week and Broadcom 24%. TSMC, which makes Nvidia’s most advanced chips, is up 11%.[2]
Mark Franklin of Manulife Investment Management told CNBC the move reflects a bet that other companies can catch up.
What happens next
Nvidia reports quarterly results on Tuesday. Analysts expect revenue of $108.9 billion, up 91% from a year earlier, by LSEG’s count.[1]
Oppenheimer analysts wrote that they expect solid earnings but think the leadership change will weigh on the shares in the near term.[1]
More coverage is on our Markets page and the AI page. This article is news coverage, not investment advice.
Sources
- CNBC: Nvidia on track for longest weekly losing streak since 2012 as market value sinks by $1.6 trillion
- CNBC: Nvidia’s turmoil is prompting a rotation across chip stocks. Here’s what we know
- CNBC: Nvidia stock inches higher as investors continue to weigh Jensen Huang’s departure
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