Key facts
- Nvidia's directors appointed finance chief Colette Kress as interim CEO while they search for a permanent replacement.
- Burry wrote that without Huang, customers could slow deals, renegotiate terms or walk to a competitor.
- Burry said Nvidia's growth may slow and its margins may fall without Huang at the helm.
- Oppenheimer's Rick Schafer downgraded Nvidia to Perform and removed his price target in a Wednesday note.
- Bernstein Research's Stacy Rasgon cut Nvidia to Market Perform and halved his price target to $200.
Michael Burry, the investor known for betting against the mid-2000s housing bubble, wrote in a Substack post on November 12, 2026 that Nvidia shareholders should sell. His argument rests on the departure of CEO Jensen Huang, who resigned on Thursday morning following fresh reports about two alleged extramarital affairs. Burry has been publicly betting against Nvidia for many months.
Burry wrote that Huang had "orchestrated" Nvidia's efforts to expand the AI ecosystem, pointing to large investments in AI stocks and the use of special vehicles and hidden debt to finance customers' chip purchases, which he said created "tremendous leverage in the system." He also claimed Huang pushed customers to buy chips they did not yet need by threatening to reduce future allocations.
Without Huang, Burry wrote, the "cash may cease to flow" and investments could dry up or be written off. Customers would be free to "slow down deals, push back, renegotiate terms, or simply walk to a competitor without fear of offending" the chip chief, he wrote. He added that Nvidia's business will not disappear but its growth may slow and its margins may fall, and that it will "take time for this Byzantine web to untangle and unwind." He closed with the advice: "Get out."
Nvidia stock fell at the start of Thursday's trading and was down nearly 35% from a $243-per-share peak in early October, according to the report. The board had been reported on Wednesday to be considering ousting Huang. Nvidia's directors have appointed finance chief Colette Kress as interim CEO while they search for a permanent replacement.
Two analysts had already cut their ratings before the resignation. Bernstein Research's Stacy Rasgon downgraded Nvidia to Market Perform and halved his price target to $200, warning in a Bloomberg TV interview of more bad press and regulatory scrutiny and questioning whether Nvidia could find a CEO as visionary as Huang. Oppenheimer's Rick Schafer downgraded Nvidia to Perform and removed his price target in a Wednesday note, writing that Huang was the "face of AI" and that the company has "massive shoes to fill and no obvious successor."