NVIDIA Drops in Overnight Trading Amid Reports of Board Leadership Review
NVIDIA shares dropped sharply in extended trading following reports that the board is evaluating CEO Jensen Huang's position. The volatility comes as several institutional investors reported expanding their holdings.
NVIDIA Corporation experienced sharp extended-hours share declines following reports that its board of directors is evaluating the future of Chief Executive Officer Jensen Huang. The development comes after media reports highlighted relationship inquiries and leadership concerns, leading to an overnight plunge exceeding 7% in off-hours trading. The company opened regular trading at $173.73 on Thursday.
The leadership uncertainty coincides with other legal and regulatory scrutiny. A new securities class action complaint, Kistenmacher v. NVIDIA Corporation, was filed in the Northern District of California covering transactions from October 2025 through early November 2026. Furthermore, Republican lawmakers have requested that Huang attend a congressional hearing on November 18, and an independent board review is examining foreign intelligence concerns.
Despite the immediate pressure, multiple institutional funds reported raising their stakes in NVIDIA during the third quarter. Annex Advisory Services LLC expanded its position by 1.8% to 668,848 shares, valued at $152,751,000. Aspiriant LLC increased its holdings by 10.3% to 39,802 shares, while Granite Islands Private Wealth LLC raised its stake by 7.3% to 55,994 shares. Institutional entities and hedge funds currently control 65.27% of NVIDIA's outstanding stock.
In contrast to institutional accumulation, corporate insider selling amounted to 1,766,118 shares valued at $399,450,353 over the last quarter. Director Mark A. Stevens disposed of 622,239 shares on September 4 for $144,122,997.18, representing a 21.03% cut in his position. Executive Vice President Timothy S. Teter also sold 30,460 shares on September 21 for $6,786,488.00 under a pre-arranged Rule 10b5-1 plan.
Wall Street opinions show differing adjustments amid the recent turbulence. Atif Malik of Citigroup lowered his price target from $315.00 to $285.00 while reiterating a "buy" rating. Robert Baird analyst Tristan Gerra lowered his recommendation to "Hold" and cut his price objective from $500 to $200, whereas Morgan Stanley analyst Joseph Moore reaffirmed a "Buy" rating with a $300 target. Across Wall Street, the consensus price target tracked by MarketBeat stands at $314.24 with an overall "Buy" rating.
NVIDIA is scheduled to report its next batch of quarterly financial results on November 17. In its previous earnings release from August 26, the company posted revenue of $96.22 billion, reflecting a 105.9% year-over-year increase, and reported quarterly earnings of $2.22 per share. On September 28, the company's board of directors authorized a $150 billion share repurchase program covering up to 2.8% of outstanding shares.