Nvidia's stock is on a losing streak not seen in 14 years. What comes next?

By Claudia Assis and Emily Bary

Nvidia has wiped out $657 billion in market capitalization this week - its sixth consecutive week of stock declines

Nvidia's earnings call next week will be a key test for the stock.

The pressure on Nvidia's stock started well before the Jensen Huang scandal came into the public eye.

Nvidia shares (NVDA) are down 14.4% this week and are on pace to record their their sixth straight weekly decline. That would be the longest stretch of consecutive weekly losses since a six-week period that ended in October 2012, according to Dow Jones Market Data.

The sustained pressure on Nvidia's stock reflects broader concerns about the sustainability of artificial-intelligence spending, particularly as it relates to the health of new-age cloud companies and the potential for a slower data-center buildout in a tougher political climate.

See also: Nvidia's stock selloff may be just beginning, even after shedding 30% from its peak

On top of that, Nvidia must contend with the fallout from Huang's stunning resignation from the company in the face of reported extramarital affairs with an executive linked to an Nvidia customer as well as with two Nvidia employees.

Nvidia didn't immediately respond to a MarketWatch request for comment.

This week, the stock is also demonstrating notable underperformance relative to the broader chip sector, with the PHLX Semiconductor Index SOX up 5.6% for the week. That means Nvidia is lagging the chip index by 20 percentage points, the biggest such gap since 2008, according to Dow Jones Market Data.

Nvidia has shed $657.2 billion in market capitalization so far this week in what would be its largest weekly wipeout on record.

Another big test looms in the week ahead, as Nvidia is scheduled to report results for the October quarter on Tuesday. Colette Kress, who has been the company's chief financial officer for more than a decade, has been tapped to serve as interim CEO while the company looks for a permanent replacement.

Don't miss: Jensen Huang built Nvidia into a behemoth. His resignation puts the entire AI boom in jeopardy.

Heading into earnings, analysts are wondering whether Nvidia's management may swoop in to support the stock with heavy buybacks. The company had $235 billion in repurchase authorizations remaining as of late September.

Some questions go deeper than the information expected to be revealed on the call. At the top of investors' minds is who Nvidia's next permanent CEO will be. Huang's departure leaves a hole, TD Cowen analysts led by Joshua Buchalter said in a note on Thursday.

The company will need "clear technical and operational authority" in addition to Kress as its financial leader. "That could result in an atypical leadership structure," the TD Cowen analysts said.

The choice would dictate the company's direction going forward - and it could look like when Apple transitioned from the "visionary" Steve Jobs to the more operations-minded Tim Cook, the analysts added.

The CEO transition could also impact Nvidia's relationships with customers and suppliers, most importantly its relationship with Taiwan Semiconductor Manufacturing Co. (TSM), according to TD Cowen. Customer or supplier defections "would be clear signs that the situation is not stabilizing," they added.

Other questions going forward are what happens with Nvidia's investments in AI and who would take Huang's mantle as AI's "most vocal advocate and evangelist." The analysts said it's unclear how much of the investments would have to be unwound.

The situation carries broad implications for the sector. And with Huang's reputation "tarnished," it's unclear who would fill that advocacy void, they said.

There's also doubt about how Nvidia would retain key executives and employees in a "very tight" market for AI talent. "Key defections and retention decisions will move the stock," the TD Cowen analysts said.

-Claudia Assis -Emily Bary

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11-13-26 1126ET