[Should you sell NVIDIA stock?] The truth behind the CEO's resignation and the future outlook for semiconductors

For those of you who own NVIDIA stock or are interested in it: Are you frozen, wondering whether you should sell immediately or hold onto it after seeing the news of the “CEO’s resignation”? The same applies to those who want to start investing but cannot take the first step. Today, I will provide you with a framework to make your own decisions without being swayed by the news.

■ Chapter 1: The night when one piece of news changed how we see our holdings

On November 12, 2026, NVIDIA announced that co-founder Jensen Huang had resigned as President, CEO, and Director. The resignation was effective as of the 11th, and CFO Colette Kress will serve as interim CEO. The company plans to select a formal successor from both inside and outside the company, and Harvey Jones has been appointed as the first Chairman of the Board.

The background reported involves a New York Times story regarding relationships with a woman suspected of being a Chinese spy and other company executives. It is reported that in a message sent to employees on the 8th, Huang admitted to and apologized for infidelity toward his wife. It is important to note that the espionage allegations are currently at the reporting stage and are not established facts.

Following the report, the stock price fell by over 8% at one point, and it was reported that it had dropped by about 20% before the resignation announcement. The next major hurdle is the earnings announcement on November 17, US time.

When this happens, you want to think in terms of a binary choice: “sell or hold.” However, that very way of framing the question is what makes the decision difficult.

■ Chapter 2: You are not struggling because you are weak

I have been on the front lines of asset management for a long time, and I have never seen anyone who does not struggle on days when the market moves significantly. Even experienced investors see their heart rates rise on days with volatile price movements. Struggling is a natural reaction.

The worries that beginners to intermediate investors tend to have generally fall into three categories.

・Not understanding the meaning of the news and having no basis for buying or selling
・Being afraid of losses and unable to start in the first place
・Being unable to sleep every time the price drops even after starting

People who are not interested in investing do not reach the point of wanting to “try it out.” I often hear this concern from those around me. It is because the image of a “scary world where you might lose money” comes first. Every time major news like this breaks, that impression becomes even stronger.

However, it is also true that assets are unlikely to grow without taking risks. There are times when savings alone lose out to inflation. What is important is not to eliminate risk, but to consider whether there is a return commensurate with the risk taken—in other words, to think in terms of risk-reward.

So today, I will talk about the “satellite” portion of a core-satellite strategy. The core is the foundation you hold for a long time, such as global stocks or index-linked investment trusts. The satellite is the part around it where you take on challenges with a limited ratio, and it is where individual stocks like NVIDIA belong. Just having this perspective will completely change how you take in news like this.

■ Chapter 3: Comparing two perspectives reveals the issues

Regarding this situation, two different viewpoints have been introduced.

Takao Hirose takes the position of “new face replacement theory.” This is the view that the roles of traditional large-cap semiconductor stocks and neo-cloud stocks have come full circle, and the protagonists of the market are shifting to new AI company players. He views the Anthropic IPO as a strong signal that the fundraising environment has restarted and as the birth of a new driving force. Regarding NVIDIA, he analyzes that it is losing its leadership position due to instability in the management structure and the limitations of the theme.

According to Anthropic’s filing, the IPO price range is $70–$78, and the amount to be raised is $56 billion to $63 billion. NVIDIA, along with Broadcom and Google, is among the investors that have signed agreements to purchase shares at the IPO price.

On the other hand, Jim Cramer holds the view that NVIDIA’s business foundation remains strong. In his appearance on CNBC on November 12, he emphasized the presence of NVIDIA’s approximately 42,000 employees and engineers. He argued that the company is not dependent on Jensen Huang alone, but is supported by the excellent talent and organization he built. He also praised Colette Kress, who became interim CEO, based on his experience of interacting with her over many years, welcoming her as someone who will bring the necessary order to management.

However, Cramer is not unconditionally bullish on the stock price either. He himself has stated that he does not know whether one should buy at this moment, and uncertainty remains regarding the changes in management structure and the future of the stock price.

In short, what Mr. Cramer is evaluating is not Mr. Huang as an individual, but the potential for the technology, talent, and business foundation he built to continue functioning.

He welcomes the financial management and control capabilities of interim CEO Kress, and views the Anthropic IPO as a good opportunity to cash in on the ecosystem investments built by Mr. Huang, which will also serve to support the market.

The difference in investment behavior is clear. Mr. Hirose has turned bullish and advocates shifting to new faces. Mr. Cramer’s stance is to lock in a portion of the massive profits made so far to prepare for uncertainty.

My summary is this: while the two seem to be in conflict, they overlap in the sense of “not putting everything into one stock.” Additionally, Anthropic is pursuing a strategy of using multiple types of chips, and analysts have pointed out the possibility that this could weaken NVIDIA’s pricing power. However, switching chips is technically difficult and costly, so it does not necessarily mean the balance of power will change immediately.

In other words, the outlook for the semiconductor industry as a whole is that while demand for AI investment remains strong, the composition of winners is becoming less monolithic.

■ Chapter 4: NVIDIA as a Satellite, Four Rules for Holding

This is where we get to the main point. A satellite is designed to have a big impact if it hits, but not to be fatal if it misses. Here are four basic rules.

The first is to decide on an upper limit for the size beforehand. It is common to think of the satellite as a whole being about 10-20% of your assets, and a single individual stock being limited to a few percent of your total assets. If NVIDIA stock has risen to the point where it is nearly half of your assets, you are in a state where your assets will be significantly shaken by a single piece of news like this.

The second is to have a rule for taking profits. What Mr. Cramer means by “locking in a portion” does not mean selling everything. You should cash out an amount equivalent to your principal or a certain percentage of the gains, and pursue growth with the remainder. This makes it easier to accept whether the price goes up or down afterward.

The third is to write down the conditions for a review. “The successor CEO is not decided and the investigation drags on,” “delays in shipments to China appear in the numbers,” “the shift to diversifying chips by major customers accelerates.” If you decide in advance that you will lower your ratio if these conditions occur, you won’t have to act on emotion every time there is news.

The fourth is not to move all at once. Whether buying or selling, split your time. Just splitting your actions before and after earnings can mitigate the risk of buying at a high or selling at a low.

For the November 17th earnings report, in addition to the numbers themselves, please look at the following four points:

・Management policy under the interim structure
・Whether the future product roadmap will continue
・Outlook for shipments to China
・Progress in selecting a successor CEO

If answers emerge here, the outlook for the entire semiconductor industry will become easier to see.

■ Chapter 5: What you should think about changes depending on your position

Not everyone is forced to make the same judgment. I will organize this by position.

For those who already have large unrealized gains, the priority is to decide now “how much to lock in,” not “whether to sell everything.” If you reach the earnings report without having a rule, your emotions will be dragged by the price movements.

For those holding unrealized losses, please remember that your purchase price is irrelevant to the market. If you re-ask yourself, “Would I buy this newly at this price today?” instead of “I’ll wait until it returns to my purchase price,” you will be able to see whether there is a reason to continue holding it.

For those who do not yet hold it, there is no need to enter individual stocks immediately after the news. It would not be too late to first build a core, and then consider the satellite after the earnings and the direction of the successor become clear.

And for those who are only continuing to invest in things like global stock index funds, there is almost no need to change anything due to this news. The core is a foundation to be held for a long time. There is no need to get involved in the turmoil of individual stocks.

■ Chapter 6: Three small steps you can take today

Finally, here are three things you can do starting today.

1. Calculate what percentage of your total assets is held in NVIDIA stock

2. Write down in a note, “At what percentage will I take some profits?” and “Under what conditions will I reduce my position?”

3. Add the key points to watch for in the November 17th earnings report to your calendar

The important thing is not to guess the right answer. Whether you can act according to the rules you have set is what separates those who stay in the market for the long term.

If you want to start investing, begin with your core holdings, a small amount is sufficient.
If you already own shares, start by reviewing your satellite allocation and rules. News will continue to flow, but if you have rules, you won’t have to panic every time.

This CEO resignation is not the end of the company known as NVIDIA, but a turning point in its structure. However, it is also true that uncertainty remains regarding the future. That is precisely why, after deciding how much you are willing to lose, you should calmly seek returns that are commensurate with the risk you are taking.

Source:
[US Stocks 11/14] Takao Hirose declares it a has-been, the lead role shifts to a newcomer
[US Stocks] AI King resigns suddenly! Should you sell Nvidia stock now!? [Jim Cramer, Mad Money]

This article is for informational purposes only and does not encourage the purchase or sale of any specific financial product. Please invest at your own risk and based on your own judgment. *If you found this article helpful, please follow and like here! I will also provide update information