Nvidia CEO Quits: What It Means for the AI Boom

With Nvidia CEO Jensen Huang leaving his role—the executive whose chips fueled the artificial intelligence surge—investors are questioning whether the rally can continue in his absence. Nvidia's stock dropped more than 10% on Thursday.

Nvidia is set to report earnings in five days without Huang at the helm. The ten largest U.S. corporations account for 36% to 40% of the S&P 500, meaning a downturn in AI-related stocks affects millions of American retirement accounts.

The trouble began before his departure. Nvidia had already entered bear market territory, dropping 20% from its all-time high on November 9.

How Far Have the AI Boom’s Biggest Winners Fallen?

Huang stepped down from Nvidia on Thursday after acknowledging a relationship with a woman U.S. officials suspect is a Chinese spy.

His exit introduces its own set of risks. Similar to Intel in 2018, Nvidia has placed its finance chief in the interim CEO role.

Intel shares declined 11.7% that year, while the S&P 500 rose 6.8%.

On November 5, following a Democratic sweep of the midterms, the S&P 500 shed around $3 trillion in a single day. The Nasdaq 100 dropped 6.36% in that market rout.

CoreWeave is now trading 55.96% below its 2026 peak, while Oracle has fallen 47.89%.

Who Is Paying for the AI Boom?

Amazon, Microsoft, Alphabet, Meta and Oracle are projected to spend $660 billion on AI infrastructure this year. That represents a 60% increase over 2025, according to FactSet and Goldman Sachs estimates.

Anthropic’s IPO filing reveals roughly $895.4 billion in data-center commitments extending through 2045, Fortune reported.

Some of that capital circulates in a loop. Broadcom can lend Anthropic up to $42 billion to pay for computing power, much of which comes from Broadcom's own hardware. Broadcom acts as the supplier, the lender and a potential future shareholder.

Nvidia sits at the heart of that cycle, as illustrated by a Bloomberg map of AI deals. It invests in, sells to or acquires from companies including OpenAI, Anthropic and CoreWeave.

That is why Huang’s departure could have repercussions beyond Nvidia. Investor and analyst Nic Puckrin notes that Huang negotiated nearly all of those agreements. He wonders whether a successor can replicate similar arrangements.

“Replacing Jensen as CEO of Nvidia could backfire on the ENTIRE AI boom. Why? Because of this chart. Jensen has been one of the biggest architects of circular financing. This has been propping up those valuations and nearly all of these deals were negotiated by him. Would a successor be able to engineer similar structures? And does uncertainty with Nvidia’s direction call into question this broader gambit?”

Columbia professor Stijn Van Nieuwerburgh identified the challenge.

“Supplier financing supports construction; ultimately, paying for it requires revenue from end customers.”

CoreWeave’s bonds maturing in 2032 yield over 16%, according to Bull Theory.

Is the AI Boom a Bubble or a Buying Chance?

Market research account Bull Theory called the bubble early in February. Its latest scorecard rates six of eight warning signs as “late,” though it still anticipates a peak in 2027 or 2028.

The S&P 500’s cyclically adjusted price-to-earnings (CAPE) ratio, which compares prices to 10 years of earnings, sits near 40. The 2000 peak was 44.2.

Borrowing to purchase stocks has slowed. Margin debt—money borrowed from brokers—stood at $1.48 trillion in September, according to FINRA data. That is below June's record of $1.502 trillion.

Cheap money has also disappeared. October inflation came in hotter than expected, pushing the 10-year Treasury yield back to around 5%. Now, CME FedWatch odds are above 90% for a December rate hike from the Fed.

Buyers have not disappeared. Anthropic is seeking to raise up to $64.4 billion next week at a valuation of as much as $1.4 trillion.

AMD stock has gained 40% from its November 5 low.

The S&P 500 remains 2.5% shy of a record high.

Where Would the Money Go if AI Stocks Crack?

When the dot-com bubble burst, the Nasdaq fell roughly 78% from March 2000 to October 2002. Bonds rallied as the Fed reduced rates, and gold began a decade-long uptrend.

Bull Theory argues that gold, bonds and Bitcoin (BTC) could attract those funds. Gold stands 25.67% below its January record, and BTC is down 16.76% this year.

“…crypto doesn’t carry the bubble risk tech carries now…If AI stocks crack and the Fed is forced to cut rates, money will look for assets that have already corrected and still have a growth story. Crypto fits both.”

Gold advocate Peter Schiff argued last week that Bitcoin, not AI, is the real bubble risk.

What happens to the AI boom without Huang? Based on the evidence, it does not end with him. However, his departure increases the importance of three key dates:

• Nvidia reports on November 17
• Anthropic is expected to list on November 19 and
• The Fed decides on December 9.