Nvidia Shares: Should Investors Sell After Jensen Huang’s Exit? Here’s What Michael Burry Says

Nvidia shareholders are confronting an important question following Jensen Huang's sudden departure: can the chipmaker sustain its growth and defend its market position without the executive who led it for more than three decades?

Prominent investor Michael Burry believes the transition could expose vulnerabilities in Nvidia's business model. He argues that the company's rapid expansion was supported not just by its technology, but also by a network of customer relationships, investments and financing arrangements that Huang helped build.

With a new chief executive at the helm, some of those arrangements could come under pressure, potentially slowing growth and reducing margins. Burry, who became widely known for predicting the US housing market collapse ahead of the 2008 financial crisis, has maintained a bearish position on Nvidia.

His latest comments also reveal that he has increased bets against the broader technology and semiconductor markets. According to a report by The Financial Express, his advice to investors who continue to back Nvidia was unambiguous: “Get out.” The market reaction to Huang's exit was immediate, although Nvidia shares recovered some of their losses during Thursday's session.

The stock had closed at $173.73 on Wednesday before falling more than 14 per cent to an intraday low of $148.80 shortly after the market opened on Thursday. The decline took it to its lowest level since June 2025. Nvidia subsequently recovered to close regular trading at $166.19, down 4.34 per cent* It edged higher to $167.84 in after-hours trading.

Even after the partial recovery, the shares were nearly 32 per cent below their early-October peak of $243.37. Nvidia announced on November 12 that Huang had resigned as president, CEO and board member with immediate effect.

Chief Financial Officer Colette Kress was appointed interim CEO, while Harvey C Jones became the company's first-ever board chairman. The company's filing with the US Securities and Exchange Commission (SEC) stated that the board accepted Huang's resignation on November 11.

This was the same day The Wall Street Journal reported that directors were preparing to remove him. Nvidia did not disclose a reason for the departure. Also Read : Nvidia CEO Jensen Huang Faces Third Affair Allegation As Scandal Deepens For Burry, the bigger concern is what Huang's exit could mean for Nvidia's relationships with customers.

In a series of Substack posts, he argued that Huang had been instrumental in developing the company's AI business and expanding the wider artificial intelligence industry, reported FE. Burry pointed to investments in AI companies and financial arrangements that helped customers fund purchases of Nvidia chips.

He believes these structures created significant financial leverage across the industry. He also alleged that customers were encouraged to buy chips even when they did not have an immediate requirement, partly because they feared Nvidia might reduce future supplies if they did not commit to purchases.

That could have consequences beyond Nvidia's direct sales. If customer investments and financing arrangements lose momentum, the broader network of businesses built around its AI ecosystem could also face pressure. “Nvidia's business will not disappear,” Burry wrote.

“But its growth may slow and, critically, its margins may fall.” Burry has also questioned whether Nvidia's next chief executive will be able to take over the responsibilities Huang handled. In a separate Substack post titled 'The Don Goes Down', he referred to reports that as many as 60 people reported directly to Huang and that he delegated relatively little of his work.

The investor suggested that this management structure could make the transition difficult, regardless of who is eventually selected to lead the company. He believes the business arrangements developed under Huang were closely connected to his leadership and could be difficult to replicate.