Nvidia Drops Below $4 Trillion as Chip Stocks Sink on Friday
Nvidia closed below $4 trillion on Friday as chip stocks sank after Jensen Huang's resignation, with HSBC cutting the stock to hold and the board approaching Arm CEO Rene Haas.
Nvidia (NVDA) closed below a $4 trillion market value on Friday, Nov. 13, after a week in which it shed $657 billion and fell roughly 12 percent, according to Yahoo Finance and MarketWatch as reported by Chip Dispatch. The losses came after Jensen Huang resigned as Nvidia chief executive on Thursday.
Nvidia fell about 3 percent to roughly $161 on Friday, after a drop of more than 4 percent on Thursday, and was on course for its sixth straight weekly decline, CNBC reported. HSBC cut Nvidia to hold and lowered its price target to $170 from $365, saying the stock will struggle until a new chief executive is named. The Financial Times reported that Nvidia's board approached Arm (ARM) chief executive Rene Haas about the job. Arm's US shares fell about 6 percent.
The Philadelphia Semiconductor Index slid about 5 percent during the session, Investing.com reported. Advanced Micro Devices (AMD) gave back Thursday's gain of more than 5 percent and fell about 10.5 percent on Friday, Benzinga reported. Broadcom (AVGO) fell about 5 percent after Rothschild & Co Redburn cut it to neutral from buy. Dell, Coherent and Sandisk also dropped sharply, and Cisco fell 6 percent as traders cashed out a day after it beat estimates and raised its guidance, CNBC reported.
Reuters reported that neoclouds and AI stocks slid again as the Nvidia turmoil rattled the sector. CoreWeave and Nebius each fell about 10 percent in early-afternoon trading, CNBC reported; Benzinga said Nebius fell nearly 17 percent at one point on its weak outlook and Nscale's wider loss. Nebius had cut its 2026 sales expectation to the low end of guidance on colocation delays, and Nscale's amended IPO filing showed a $16.9 billion nine-month loss.
Not every name fell. Modine soared more than 25 percent after Bloomberg reported that Samsung is in talks to buy the data-center cooling maker. Cerebras rose 16 percent before the bell after a surprise profit and better-than-expected third-quarter revenue. Apple rose nearly 1 percent to an intraday record of $360.80 as investors looked for safety, CNBC reported. Microsoft fell more than 1 percent before the open during an outage that disrupted Outlook and Teams.
The broader market finished mixed. The S&P 500 fell 30.73 points, or 0.4 percent, to 7,561.67. The Nasdaq Composite dropped 229.82 points, or 0.9 percent, to 25,136.27. The Dow Jones Industrial Average rose 50.46 points, or 0.1 percent, to 52,347.55, according to the Associated Press. The Russell 2000 slipped 0.3 percent to 2,790.49.
Stocks opened mixed after a cooler-than-expected October producer price report, then gave up early gains as chip stocks slid. The Cboe Volatility Index rose 3.2 percent to 19.30, Yahoo Finance data showed. In delayed trading, Nvidia was down about 2.0 percent, Advanced Micro Devices down about 8.8 percent, Broadcom down about 4.8 percent and Arm down about 4.6 percent.
Nvidia reports Tuesday, Nov. 17, in its first report since Huang resigned, with Colette Kress as interim chief executive. Investors are also watching Anthropic's IPO, whose bankers were weighing pricing above the $70 to $78 range, the Financial Times reported. Goldman Sachs on Friday forecast the S&P 500 at 8,700 by the end of 2027 despite slower earnings growth, Reuters reported.