NVDA Stock Heads for Worst Week In Over A Year As Jensen Huang’s CEO Saga Ends: Are Retail Traders Still Buying The Dip?

Retail traders are sharply divided about Nvidia’s future and the stock’s performance.

• Jensen Huang’s exit followed disclosures about relationships with a former Nvidia customer executive and company employees. 
• Stocktwits poll showed 58% buying the dip, while 42% avoided the stock.
• Truist and Craig-Hallum downgraded Nvidia to ‘Hold’ and cut price targets. 

Nvidia Corp. (NVDA) is heading for its worst weekly performance in more than a year, after CEO Jensen Huang resigned amid a growing scandal and federal investigations, ending his 33-year run at the AI chipmaker. With Colette Kress taking over as interim CEO, analysts are turning cautious and downgrading the stock, raising questions about the future of the AI trade. 

Retail investors, however, remain bullish on NVDA, with a Stocktwits poll showing that 58% of the respondents are buying the dip amid the leadership transition and exposure to China-related scrutiny.

Nvidia stock edged up 0.08% overnight Thursday. The stock has slumped 10.9% so far this week. 

Nvidia Names Colette Kress Interim CEO After Jensen Huang’s Exit

The crisis at Nvidia began after Huang acknowledged a relationship with a former executive at Singapore-based Megaspeed International, an Nvidia customer facing U.S. scrutiny over possible unauthorized chip shipments to China. 

Further, reports also revealed that Huang had relationships with other Nvidia employees. On Thursday, the company named longtime CFO Colette Kress as interim CEO and appointed Harvey Jones as chairman. However, Huang’s sudden departure leaves a major leadership gap because of his close involvement in running the company. 

What Are NVDA Retail Traders Saying

Despite the turmoil, sentiment among individual investors remains positive. On Stocktwits, retail sentiment around the stock remained ‘extremely bullish’. The stock recorded a 593% increase in message volume over the past week, with a 1.2% gain in watchers. 

A latest Stocktwits poll shows that 58% of retail traders are buying Nvidia’s dip, believing its strong position in the AI market and lower stock price make it attractive. Meanwhile, the remaining 42% are avoiding the stock due to concerns about regulatory action and investigations into chip exports. 

A user said, “For those of you buying the NVDA dip right now, I wish you all the best. I did that with Intel and while it eventually moved in the right direction, not before I was completely flushed out. I can see a similar thing with NVDA. Leadership is everything.”

Another user said, “Did 157's[bought the dip], and looking for exit below 163 now.” 

A third user said, “Nope, federal investigations with CEO dealing with China spy?  Heck no, they're gonna be fined like crazy and ex-wife is gonna take half. This stock I bet hits below 100 before 2027, the feds are going to find some bad stuff here.”

Wall Street Downgrades Nvidia On Leadership Gap 

On Thursday, Truist downgraded Nvidia to ‘Hold’ from ‘Buy’ and cut its price target to $174 from $346. The firm said the risks facing the company now matter more than its valuation. Beyond Huang’s personal relationships and sudden resignation, Truist raised concerns about damage to Nvidia’s workplace culture and reports that its GPUs may have reached companies and government agencies in China. 

Craig-Hallum also downgraded Nvidia to ‘Hold’ from ‘Buy’ and slashed its price target to $180 from $275. The firm said Huang’s departure leaves a major leadership gap that will be extremely difficult to fill. 

NVDA stock has declined over 10% year-to-date. 

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