Nvidia Crisis – Visionary Huang’s Resignation Puts America's AI Advantage at Risk; Gold Falls Below $4000

America’s AI Advantage At Risk

Please click here for an enlarged weekly chart of NVIDIA Corp (NASDAQ:NVDA).

Note the following:

• At this time, it is critical for investors to remember our principle: Give precedence to return of capital over return on capital.  
• This article is about the big picture, not an individual stock.  The chart of NVDA stock is being used to illustrate the point.  The chart is a weekly chart, instead of a daily chart, to give you a longer term perspective.
• The chart shows NVDA stock has decisively fallen below zone 2 (prior support, now resistance).
• Expect the buy-the-dip crowd, a subset of the momo (momentum) crowd, to buy the
  early dip in Nvidia stock. Over the long bull market, this crowd has been conditioned
  to buy every dip. The momo crowd buys primarily based on price action and
  momentum. They typically conduct only superficial analysis and rarely engage in deep
  macroeconomic or fundamental analysis. Expect smart money to sell into the
  strength.
• Expect rumors of a potential appointment of ex-Apple CEO Tim Cook or AMD CEO Lisa Su to add to the intensity of early buying.
• In our analysis in longer term NVDA stock is likely to drift down, unless someone like AMD’s Lisa Su is appointed to CEO.
• Jensen Huang has resigned as CEO of Nvidia.  The CFO has been named interim CEO as of this writing.
  • Yesterday morning, hardly anyone was talking about the possibility of Huang’s removal.  In yesterday’s Morning Capsule, we wrote in the premarket:

• If Huang is forced to leave Nvidia, NVDA stock could easily fall 25%.

• By last night, Huang’s potential removal was dominating market headlines. 
• The chart shows our zone 3 (support).  There is a high probability of NVDA stock falling into zone 3.  
• There is a high probability that our algorithms will give a buy signal on Nvidia if NVDA stock falls in zone 3.  Yesterday morning in the premarket, when the potential ouster of Huang was not the news, we laid out the plan in advance for you.  We wrote:

•   If NVDA stock falls 25%, we will likely give a buy signal.

• In our analysis, the impact of Huang’s resignation will be much bigger than the impact on NVDA stock. The U.S.’s lead over China in artificial intelligence may also be at stake.
  • Huang was not an ordinary CEO.  He is a visionary who has built Nvidia into the most important company powering the AI revolution.  Huang saw the potential of GPUs for AI long before most of the technology industry.
  • Under Huang, Nvidia built an ecosystem of chips, software, networking, and developers that competitors are still struggling to match.
  • Huang repeatedly anticipated where technology is headed and positioned Nvidia years ahead of the competition.
• It is true that no one is indispensable.  In our analysis, Huang is unique in that he combines four extraordinary qualities:
  • A great semiconductor engineer
  • A great software engineer
  • A visionary at every step of the way
  • A great deal maker
• In our analysis, it will be extraordinarily difficult to find another CEO with all four qualities.  
• In our analysis, what most investors are missing is that Huang had become one of the most important bankers of the AI industry.   Nvidia was not simply selling chips under Huang.  Nvidia was also helping finance the companies that buy its chips.
  • Nvidia has invested billions of dollars across the AI ecosystem.  Without Nvidia’s backing, many AI startups would have had a much harder time getting financing.
  • Nvidia has helped make the neocloud industry possible. Without Nvidia, several neoclouds would likely be much smaller today.  Neoclouds such as CoreWeave Inc (CRWV) and Nebius Group NV (NBIS) have benefited enormously from Nvidia’s investments, technology, and relationships.  Nvidia invested $2B each in CoreWeave and Nebius in 2026.
  • Nvidia has also invested $2B each in Marvell Technology Inc (MRVL), Coherent Corp (COHR), and Lumentum Holdings Inc (LITE).  These investments are helping develop the technologies and manufacturing capacity needed for the next generation of AI infrastructure.
  • Huang brought Wall Street into the AI buildout.  Nvidia announced partnerships with Apollo Global Management Ord Shs (APO), BlackRock Inc (BLK), Blackstone Inc (BX), Brookfield Corp (BN), The Goldman Sachs Group, Inc. (GS), and KKR & Co Inc (KKR) aimed at mobilizing over $500B in third party capital over time.
  • Nvidia’s backing helped companies attract other investors and lenders.  Nvidia’s involvement gave credibility to projects that might otherwise struggle to obtain financing.
• Nvidia’s support of the AI industry has created two risks:
  • Some of this financing is circular.
  • Problems at Nvidia could spread to other companies that depend on its financial backing.
• In our analysis, China could be a major beneficiary from Huang’s resignation.  China is investing heavily in developing its own AI chips, software, and infrastructure.  China does not need to catch up overnight.  It only needs Nvidia to stumble and give Chinese companies more time.  The disruption in Nvidia’s leadership could slow innovation and execution at a critical time.  Nvidia is central to the U.S.’s AI lead.  Huang’s departure from Nvidia could weaken that advantage.
• Here is the key question for investors: Will Nvidia be able to maintain its lead for years to come without Huang?
• In our analysis, here is what the Nvidia situation means for investors:
  • Wall Street’s immediate focus is on NVDA stock, but prudent investors need to look at the broader implications.
  • Huang’s resignation could cause investors to reassess Nvidia’s premium valuation.
  • Advanced Micro Devices Inc (AMD), Broadcom Inc (AVGO), and Marvell could benefit if customers accelerate efforts to reduce their dependence on Nvidia.
  • Companies that depend on Nvidia’s financing and strategic support could come under pressure.
  • The pace of the entire AI revolution could slow. 
• We are paying close attention to the sequence of events, market positioning, money flows, and the potential impact on the entire AI trade.
• In our analysis, the initial market reaction has been driven by fear and uncertainty.  However, longer term opportunities will depend on Nvidia’s leadership, execution, and whether its competitive position changes.  Investors should not confuse a sharp move in stock prices with a permanent change in the fundamentals.
• Finally, investors should ask this question: How is the loss of the most visionary semiconductor leader good for the U.S.?
• Applied Materials Inc (AMAT) is one of the major semiconductor equipment manufacturers in the world.  For this reason, Applied Materials earnings are important.  Applied Materials will report earnings today after the close.
• Initial jobless claims came at 200K vs. 195K consensus.
• Producer Price Index (PPI) will be released tomorrow at 8:30am ET and may be market moving.
• Gold has fallen below $4000 due to rising interest rates.  

Magnificent Seven Money Flows

Most portfolios are now heavily concentrated in the Mag 7 stocks.  For this reason, it is important to pay attention to early money flows in the Mag 7 stocks on a daily basis. 

In the early trade, money flows are positive in Apple (NASDAQ:AAPL).

In the early trade, money flows are negative in Amazon.com, Inc. (NASDAQ:AMZN), Nvidia (NVDA), Microsoft Corp (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Meta Platforms Inc (NASDAQ:META), and Tesla Inc (NASDAQ:TSLA).

In the early trade, money flows are negative in SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust Series 1 (NASDAQ:QQQ).

Momo Crowd And Smart Money In Stocks

Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (NYSE:GLD).  The most popular ETF for silver is iShares Silver Trust (SLV).  The most popular ETF for oil is United States Oil ETF (USO).

Bitcoin

Bitcoin (CRYPTO: BTC) seeing selling.

What To Do Now

Consider continuing to hold good, very long term, existing positions and add tactical positions based on signals.

The Arora Report is known for its accurate calls. Most recently, we correctly called the rally from recent stock market lows and the 2026 semiconductor decline before a 25% drop in the Semiconductor ETF (SMH). In gold, we bought at an average price near $1,105, close to cycle lows, and took partial profits near $5,400, close to cycle highs. Please click here to get our free forever Generate Wealth Newsletter.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.