Nvidia shares fell sharply in premarket trading on Thursday, putting the chipmaker's market value on course to drop below $4 trillion for the first time since July 2025. The slide deepened a crisis that has already wiped about $300 billion from the top AI company in days, as its board weighs the future of founder and CEO Jensen Huang.

Key Points

• Nvidia shares fell 7.8% in premarket trading on Thursday, November 12, 2026, leaving its market value on course to fall below $4 trillion for the first time since July 2025.
• The company has lost about $300 billion in value since its board announced an investigation on Sunday into Huang's relationship with Alice Huang, a businesswoman US officials suspect of spying for China.
• The selloff spread across AI stocks: CoreWeave fell 6%, Nebius dropped 10.7%, Micron slipped 3.4%, and Sandisk and Western Digital eased 5.1% and 3.2%.
• Short sellers have made about $3.8 billion in paper profits, which could swell to about $6.8 billion if the share price falls to $163, according to data firm ORTEX.
• Nvidia now trades at about 12 times 12-month forward earnings, its lowest valuation on that measure since November 2012, according to LSEG data.

What Happened

Nvidia shares dropped 7.8% before the opening bell on Thursday, extending a punishing week for the chipmaker and putting its market value on track to slip below the $4 trillion mark. The fall came as reports said the board was deciding whether to oust Huang, the co-founder who has led Nvidia for 33 years and built it into the dominant AI chip supplier.

The premarket slide followed a volatile Wednesday, when the shares closed higher in regular trading but fell about 8% after hours as reports emerged that the board was preparing to remove Huang. The damage is already historic by one measure: Nvidia has lost about $300 billion in market value since Sunday, when the board announced an independent investigation into Huang's relationship with Alice Huang, a former Megaspeed executive whom US intelligence officials suspect of working for Chinese intelligence.

Background: A Week of Turmoil at Nvidia

The crisis began on Sunday, November 8, when Nvidia's board said it was launching an independent investigation after reports that Huang had been the target of a foreign intelligence operation. In a message to employees, Huang admitted he had been unfaithful to his wife and took full responsibility. The board said it had no reason to believe national security or company secrets had been compromised, but it appointed a committee of independent directors to examine the matter.

On Wednesday, November 11, the Wall Street Journal reported that the board was preparing to remove Huang after learning of two extramarital affairs: one with Alice Huang, and a second, reported by the New York Times, with Kimberly Powell, a senior Nvidia healthcare executive. Investigators are examining Megaspeed over suspicions it helped move billions of dollars in export-restricted Nvidia AI chips to China. The Justice Department is leading multiple investigations involving her, and House lawmakers have summoned Huang to a closed-door briefing on November 18.

Nvidia Shares Fall Below $4 Trillion

The $4 trillion threshold matters because it is as much psychological as financial. Nvidia first crossed the mark in the summer of 2025, at the height of AI enthusiasm, and holding above it had become a symbol of the AI trade's strength. Falling below it signals how fast sentiment has turned.

At a share price of $163, short sellers betting against Nvidia would hold about $6.8 billion in paper profits, up from about $3.8 billion at the last close, according to ORTEX. At about 12 times 12-month forward earnings, Nvidia now trades at its cheapest valuation on that measure since November 2012, according to LSEG data. The question is whether the market is pricing in a temporary governance crisis or a deeper reassessment of the AI boom.

Reactions: Rivals Rise as Short Sellers Cash In

Not every chipmaker suffered on Thursday. Rival AMD rose 1.7% in premarket trading and Broadcom gained 0.8%, as investors bet the turmoil could open doors for its competitors. The broader AI trade, however, moved firmly lower: CoreWeave fell 6%, giving back part of a 27% surge in the previous session after its earnings report, while Nebius dropped 10.7% after its third-quarter results.

Micron Technology fell 3.4%, Sandisk and Western Digital eased 5.1% and 3.2%, and Lumentum, Coherent and Dell fell between 3.3% and 4.1%. Japan's Nikkei and South Korea's Kospi each closed nearly 0.7% lower, and European technology stocks fell about 1%.

Why It Matters

Nvidia is the bellwether of the artificial-intelligence trade, the single stock most closely tied to the trillion-dollar bet that AI will transform the global economy. When Nvidia falls 8% in a session, the whole sector moves with it, and this week's losses have spread from chipmakers to cloud, memory and Asian suppliers. The crisis also sits at the intersection of corporate governance and national security: the investigation touches on US export controls, on China's access to advanced chips, and on the oversight of a company whose technology is now treated as a strategic asset. Whatever the board decides, Washington regulators and lawmakers are already involved, and their questions will not end with one announcement.

What Happens Next

The immediate focus is the board's decision on Huang's future. The board met on Wednesday to weigh whether to remove him, and no decision had been announced when premarket trading began on Thursday. Nvidia's third-quarter results on Tuesday, November 17, will be the next scheduled test, and Huang has been asked to appear at a closed-door congressional briefing the following day. Until then, the stock is likely to remain volatile, with short sellers in profit, rivals circling, and the market awaiting clarity on who will lead the world's most important AI company.

Frequently Asked Questions

Why did Nvidia shares fall on Thursday?

Nvidia shares fell 7.8% in premarket trading on Thursday, November 12, 2026, amid reports the board was deciding whether to oust CEO Jensen Huang, extending a selloff that has wiped about $300 billion from the company's value since Sunday.

What is Nvidia's market value now?

Nvidia's market value was on course to fall below $4 trillion for the first time since July 2025 after Thursday's premarket slide.

What is the investigation into Jensen Huang about?

The board announced an independent investigation on Sunday, November 8, into Huang's relationship with Alice Huang, a former Megaspeed executive US officials suspect of working for Chinese intelligence. Huang admitted he had been unfaithful to his wife and apologised.

Which other stocks fell with Nvidia?

CoreWeave fell 6%, Nebius 10.7%, Micron 3.4%, and Sandisk and Western Digital 5.1% and 3.2%. Lumentum, Coherent and Dell fell 3.3% to 4.1%, while the Nikkei and Kospi closed nearly 0.7% lower.

When does Nvidia report earnings?

Nvidia reports third-quarter fiscal 2027 results on Tuesday, November 17, 2026. Huang has also been asked to appear at a closed-door congressional briefing on November 18.

Related coverage: Nvidia board preparing to oust CEO Jensen Huang, WSJ reports; Megaspeed pledges full cooperation with US probe in Nvidia chip scandal; Kang Wei, Alice Huang's husband, introduced her to Nvidia CEO Jensen Huang, WSJ reports.