Nvidia shares slip again as Wall Street weighs chip giant’s future

Nvidia shares fell 2.5 per cent to about $162 in early Friday trading, taking the company’s market value below $4 trillion as investors considered the departure of chief executive Jensen Huang. His resignation after 33 years followed reports of multiple affairs, including one with a woman suspected by US intelligence officials of spying for China, raising questions about the chipmaker’s leadership and governance.

Chief financial officer Colette Kress is serving as interim chief executive while the board seeks a permanent successor. The decline followed a volatile Thursday, when Nvidia shares dropped more than 13 per cent at the open and closed down just over 4 per cent; rival chipmakers AMD, Broadcom and Intel also fell around 2 per cent on Friday. Some analysts see support near $165, while Nvidia trades at about 13 times forward earnings despite revenue growth of roughly 60 per cent year on year; GF Securities and Oppenheimer have downgraded the stock.