The sudden departure of Nvidia co-founder and chief executive officer Jensen Huang shook the artificial intelligence sector this week. The announcement comes as investors are already questioning the financing and profitability of massive AI investments. Despite a rebound in major indexes since last Friday, markets remain nervous: U.S. inflation persists, oil prices are fluctuating and a global Microsoft outage is disrupting numerous organizations. At Pratte, we are currently accumulating shares of Nvidia.
Under the Spotlight
Nvidia (NVDA)
The departure of the face of artificial intelligence
This was the news that captured markets’ attention this week. On Thursday, Nvidia announced that Jensen Huang was leaving his roles as president, chief executive officer and board member, effective immediately.
For investors, this is more than a routine change in leadership. Mr. Huang co-founded Nvidia in 1993, led the company for more than three decades and has been one of the most influential figures in the development of artificial intelligence. His role in relationships with customers, partners and policymakers extended beyond that of a typical executive.
In its official announcement, Nvidia described his departure as a resignation. Bloomberg, meanwhile, reported that he was ousted by the board.
Why did he leave?
Nvidia’s board had launched an independent investigation following media reports about a personal relationship between Mr. Huang and a businesswoman whom U.S. authorities suspect of having ties to Chinese intelligence. Subsequent media reports about a relationship with an Nvidia employee increased pressure on the company’s governance.
When the board announced its investigation, it said it had no reason to believe national security or Nvidia secrets had been compromised. The outcome of the investigation was not disclosed in the departure announcement. Confirmed facts must therefore be distinguished from allegations that remain under review.
To manage the transition, chief financial officer Colette Kress has become interim chief executive officer while retaining her current duties. She has been with Nvidia since 2013 and knows the company’s operations and finances well. The board is beginning a search for a permanent successor and will consider internal and external candidates.
Nvidia says it expects its operations, customer commitments and product roadmap to continue without interruption. The coming months will show how the transition unfolds.
A sharp market reaction
The stock was already under pressure before the announcement. It ended Monday and Tuesday down 4.27% and 5.47%, respectively, before recovering 2.87% on Wednesday.
On Thursday, after the departure was announced, the shares touched a low of US$148.80, approximately 14.4% below Wednesday’s close. They then pared their losses and ended the session at US$166.19, down 4.34%.
At 10:05 a.m. on Friday, the shares traded at US$162.42, down 2.27% for the session and approximately 12.98% since the previous Friday’s close. These figures may continue to change during the day.
A company that continues to deliver strong growth
The departure of its leader raises important questions, but the company’s business also deserves attention. In its most recently published quarterly results, for the quarter ended July 26, Nvidia reported:
- Revenue of US$96.2 billion, up 106% year over year.
- Data centre revenue of US$89 billion, up 117%.
- Net income under accounting standards of US$59.7 billion.
- A gross margin of 75%, before the company’s other expenses.
Data centres therefore represented approximately 92.5% of quarterly revenue. This concentration shows how much Nvidia benefits from AI investment, but also how much its results depend on that demand continuing.
Valuation and what to watch
The drop in the stock has also reduced its valuation. According to LSEG data reported by Reuters on Thursday, the shares were trading at around 12 times expected earnings over the next twelve months, a level Reuters described as their lowest since 2012.
That ratio is based on forecast earnings. If estimates fall, the stock could look less inexpensive than that figure suggests. Succession, competition, restrictions on chip exports and the pace of AI spending remain risks to monitor.
Nvidia will report its next results on Tuesday, November 17, after the close. The company had previously forecast revenue of approximately US$108 billion, plus or minus 2%, for the quarter. Colette Kress’s comments on demand and the outlook will be watched particularly closely.
At Pratte, we are currently accumulating Nvidia shares. As part of our investment approach, we continue to monitor the company’s prospects, valuation and the risks associated with this transition.
Theme of the Week
Nvidia’s shock spreads through the AI ecosystem
Jensen Huang’s departure had repercussions well beyond Nvidia. The company’s chips are used in data centres that train and run artificial intelligence applications. Nvidia also has business relationships with, and owns stakes in, several companies in that ecosystem.
When uncertainty affects such a major player, investors reassess the prospects of its suppliers, partners, customers and competitors. This week, however, the reactions varied considerably from one stock to another.
On Thursday, CoreWeave, a cloud infrastructure provider linked to Nvidia, lost 6.86%, following a 24.7% jump on Wednesday after its results. By contrast, rivals AMD and Broadcom gained 5.86% and 5.54%, respectively, on Thursday, as some investors considered whether they might benefit from uncertainty at Nvidia.
The episode also highlights financial ties among companies in the sector. Nvidia invests in some companies that use its chips. These relationships can support the development of new capacity, but they also make companies more interdependent. Investors therefore want to understand how projects will be financed and what profits they will generate.
Demand remains present: CoreWeave raised its annual revenue outlook to a range of US$13 billion to US$13.3 billion. However, it expects to spend US$37 billion to US$39 billion on investments in 2026 and recorded a net loss of US$709 million in the latest quarter. Revenue growth does not necessarily translate into profits yet.
At Nebius, quarterly revenue rose sharply, but delays in adding capacity led the company to lower the top end of its 2026 revenue forecast. Its shares lost 16.84% on Thursday.
Inflation and interest rates add pressure
AI was not the only issue concerning markets. In the United States, consumer prices rose 0.4% in October from September. Excluding food and energy, the increase was 0.3%. Energy price growth slowed, but increases continued in categories including housing and food.
On Friday, producer price data showed a monthly increase of 0.3% in October. Over twelve months, prices rose 6.5%, compared with 6.3% in September. This measure provides an indication of upstream cost pressures on businesses.
For investors, persistent inflation can mean higher borrowing costs for longer. That is particularly relevant for companies financing large data centre projects. The U.S. ten-year Treasury yield moved above 5% this week.
In Canada, the summary of deliberations released Tuesday showed that the Bank of Canada had considered raising its policy rate at its October 28 meeting before holding it at 2.25%. It is monitoring, among other things, the risk that high energy prices spread more broadly through the economy.
Oil: more supply, but volatility remains
Oil prices started the week lower: Brent lost nearly 5.9% on Monday before recovering later in the week.
According to the International Energy Agency’s November report, global oil supply is expected to exceed demand in the fourth quarter of 2026. Production increased in October, helped by the recovery of Gulf exports.
This outlook does not guarantee a steady decline in prices. Middle East tensions and risks to maritime transport remain. Refined products do not always immediately follow crude prices: according to the Agency, diesel in Europe remained approximately 77% above its pre-war level, despite falling since early October.
Microsoft: a global outage
Since Thursday, an outage has affected several Microsoft 365 services, including Outlook, Teams and Copilot. Businesses and public organizations have experienced interruptions to their communications and operations.
On Friday morning, Microsoft reported improvements in several regions, but some users continued to experience access problems and email delays. The company was still working to determine the cause and said it had no indication of malicious activity.
The incident is a reminder of how dependent many organizations are on cloud services. It is still too early to assess the financial consequences.
Market Summary
After the previous week’s sharp decline, markets rebounded on Monday: the S&P 500 gained 2.3% and the Nasdaq Composite, 2.7%. CoreWeave’s results then helped support AI-related stocks on Wednesday.
Jensen Huang’s departure brought volatility back on Thursday. While the major U.S. indexes posted relatively modest losses at the close, moves were much larger for certain companies. On Friday morning, the major North American indexes remained higher than the previous Friday, although some gains had faded.
Markets by the Numbers
Weekly changes as of November 13, 2026
| Market / indicator | Week |
|---|---|
| S&P 500 | +2.25% |
| Nasdaq Composite | +2.27% |
| Dow Jones | +2.05% |
| S&P/TSX | +0.96% |
| Brent crude | −1.44% |
| WTI crude | −1.42% |
| U.S. ten-year Treasury yield | +29.6 basis points |
| Canadian dollar against the U.S. dollar | −1.00% |
Index, oil and bond yield changes compare Friday morning readings with the previous week’s close. The Canadian dollar change is calculated using the Bank of Canada’s daily average exchange rates for November 6 and 12.
Stock Highlights
Nvidia (NVDA): −2.27% on Friday at 10:05 a.m. The stock remains under pressure following Jensen Huang’s departure; it lost 4.34% on Thursday.
AMD (AMD): +5.86% on Thursday. Nvidia’s competitor advanced as investors assessed the implications of the leadership change across the chip industry.
CoreWeave (CRWV): −6.86% on Thursday. The stock fell after its 24.7% jump on Wednesday, in a week shaped by its results and concerns about AI.
Microsoft (MSFT): −0.36% on Friday at 9:59 a.m. The outage affecting several Microsoft 365 services continued, despite signs of improvement.
Canadian Tire (CTC.A): +7.22% on Thursday. The retailer reported a 3.2% increase in quarterly comparable sales and raised its annual dividend.
What to Watch Next Week
Nvidia’s results under close scrutiny
Nvidia will release its results on Tuesday, November 17 at approximately 4:20 p.m. Eastern Time, followed by an analyst call at 5 p.m. This will be its first quarterly release since Jensen Huang’s departure. Investors will watch revenue, margins, data centre demand and management’s comments on the transition.
In Canada, October inflation data will be released on Monday, November 16. U.S. retail sales will follow on Tuesday, and the minutes of the Federal Reserve’s latest meeting will be released on Wednesday.
For more on the previous week’s sharp technology swings, read our latest blog. To discuss our approach, contact our team.
