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Nvidia reports fiscal third-quarter results Tuesday after the close, with Jensen Huang gone as CEO and Treasury Secretary Scott Bessent pressing the board over China chip sales.
- Nvidia shares fell 2.01% to $162.85 Friday and 12.75% on the week, a sixth straight weekly loss.
- Bessent wants an outside CEO and answers from the board on export compliance within 10 days.
- Consensus calls for EPS of $2.47 on revenue near $108.7 billion in the first report under interim CEO Colette Kress.
Lead
Nvidia (NVDA) heads into its quarterly report Tuesday, November 17, after the close, in the most unsettled period in its history as a public company. Huang resigned as president, chief executive and director on November 12, effective immediately. The move followed disclosure of his relationship with a former executive of Singapore-based Megaspeed who is suspected of passing information to China. On Sunday, Bessent called for a "dramatic shake-up" at the chipmaker and questioned whether it pursued illicit chip sales to lift revenue and earnings.What Happened to Nvidia's Leadership?
Huang left the company he co-founded after 33 years, with the board naming Chief Financial Officer Colette Kress interim CEO while she keeps her finance role. The board also named Harvey C. Jones its first independent chair. It said it would search for a permanent successor among internal and external candidates.
The sequence moved quickly. Huang acknowledged the relationship in a November 8 message to employees, and the board opened an independent investigation. Resignation followed four days later. The company said operations, customer commitments and the product roadmap would continue without interruption.
Why Is Treasury Secretary Bessent Targeting Nvidia?
Bessent is targeting Nvidia because he sees possible systemic export-control failures, not an isolated personnel problem. He urged the board to hire from outside the company and said other executives should face scrutiny similar to that applied in banking oversight. He demanded answers from the board and outside counsel within 10 days.
His central claim concerns Singapore. He said only 1% of chips sold there stayed in the country, and he questioned whether Nvidia ignored warning signs about shell companies. Nvidia stopped reporting Singapore revenue separately in November 2025, switching to a method based on customer headquarters rather than billing address.
The dispute also reaches inside the administration. Commerce Secretary Howard Lutnick faces scrutiny over the handling of Megaspeed, which multiple agencies had supported adding to the export blacklist for months. Bessent said that decision sits with Commerce. Both officials are expected to accompany President Trump to China this week. Trump has authorized sales of H200 chips to approved Chinese customers, with a 25% share going to the U.S. government.
Why Is the Stock Falling So Sharply?
The stock is falling because leadership risk, regulatory exposure and a long losing streak have compounded one another. Friday's 2.01% decline took market value below $4 trillion for the first time since July 2025. The six-week slide, the longest weekly losing streak since 2012, has erased roughly $1.7 trillion in value since early October. The shares are down about 20% in November alone.
The weight of the stock in major indexes has spread the damage beyond technology. Friday the S&P 500 fell 0.4% to 7,561.67 and the Nasdaq dropped 0.9% to 25,136.27. The Dow rose 0.1% to 52,347.55. All three indexes still gained for the week, which snapped a four-week losing streak. Capital has shifted toward rival chipmakers, with AMD and Broadcom among the beneficiaries. At least one brokerage cut its price target to $200 from $300 while keeping a buy rating.
What Should Investors Watch in the Earnings Report?
Investors should watch demand for AI accelerators, guidance, and anything the company says about export compliance. Consensus calls for EPS of $2.47 on revenue of about $108.7 billion, roughly 91% above a year earlier. The company reports at 1:20 p.m. Pacific, with a call at 2 p.m.
Three issues will shape the reaction:
- Guidance: Whether Kress gives a fourth-quarter outlook that holds up against hyperscaler capital spending plans.
- China and Singapore disclosure: Whether management addresses the geographic breakdown of sales that Bessent has questioned.
- Governance: Whether the board gives a timeline for the CEO search. Reports that Arm Holdings chief Rene Haas is a contender drew a "no comment" from Nvidia and pushed the stock about 2% lower.
Strategic Context
The turmoil comes as the AI hardware trade depends on Nvidia's roadmap and supply commitments. A new CEO from outside would be the first change in direction for a company led by its founder since 1993. That prospect adds execution risk even as the product pipeline stays intact. Washington's scrutiny also adds a second variable. Tighter enforcement on third-country resellers could limit sales in Southeast Asia, while the H200 authorization for China points to a looser line on direct sales.
Outlook
Tuesday's report is the first test of whether demand and margins have held while governance has not. The 10-day deadline set by Bessent falls within the following week. Together with the CEO search and any Commerce Department action on Megaspeed, it will decide whether the sell-off reflects a leadership discount or a lasting change in how Nvidia can sell chips abroad.
