Nvidia shares slid 4.34% on Thursday, the steepest drop in a session that pulled Wall Street lower, according to Malacca Securities Research. The Nasdaq closed down 0.39%, the Dow fell 0.36% and the S&P 500 lost 0.35%, with materials, industrials and healthcare names dragging the indices.
Nvidia’s Business and Why the CEO Exit Hit Sentiment
Nvidia is best known for designing graphics processors and AI accelerator chips used in data centres, making its leadership a focal point for investors who have priced in heavy AI spending. Huang’s departure became the trigger for the sell-off, even though gains in AMD, Broadcom, Chevron and Cisco helped limit broader losses.
The research house argues the market is conflating a management change with a demand slowdown. According to Malacca Securities Research, Huang’s exit poses leadership risks rather than signalling weaker AI demand.
Key Financial Numbers and Valuation Basis
The report summary does not publish Nvidia’s revenue, earnings or margin figures, so the call rests on the company’s demand outlook and leadership transition. The research house has framed its stance around gradual accumulation rather than a single entry point, which implies it expects volatility to persist while the succession question is resolved.
Read-across from peers is a key part of the argument. Cisco’s after-hours guidance and Applied Materials’ outlook, both tied to strong AI demand, could cushion sentiment, and M+ Online’s research team sees Lam Research (LRCX) and KLA (KLAC) as potential beneficiaries of Applied Materials’ upbeat view, with Arista Networks (ANET) positioned to benefit from Cisco’s AI networking strength.
Risks Flagged in the Report
The macro backdrop is a headwind. The US 10-year Treasury yield has risen to 5.13%, and investors are watching Friday’s PPI data for signs of how rates may move next.
Malacca Securities also highlighted that a leadership vacuum at a company of Nvidia’s scale can prolong share price weakness even when operating demand holds up. The research house has not attached a timeline to any recovery.
Bursa Malaysia Spillover and What This Means for Retail Investors
The local bourse closed lower in a broad correction linked to Nvidia’s uncertainty, with 799 losers outnumbering 318 gainers. Construction was the worst-performing sector at -3.55%, weighed by Gamuda and YTL Power, while plantation rose 2.19%, led by SDG and UTDPLT.
Malacca Securities expects the local market to stay under pressure in the near term, but flags possible buying interest in brewery stocks HEIM and CARLSBG ahead of year-end festivities and Chinese New Year. It also sees trading opportunities in plantation counters KLK, SDG and JPG as CPO prices rebound. Separately, the research house favours 5E Resources (5ER), whose Pasir Gudang facility has lifted annual treatment and recycling capacity from 282k tonnes to over 500k tonnes.
For retail investors, the report offers a framework rather than a verdict. Nvidia’s case rests on whether the company can retain its AI leadership after a change at the top, and the research house’s view is one input among many. The full report is available from M+ Online at mplusonline.com, and readers should review it directly before making any decisions.
Key Takeaways
- Nvidia fell 4.34% after concerns over CEO Jensen Huang’s resignation, according to Malacca Securities Research.
- The research house sees long-term value in NVDA and describes accumulation as gradual, with no target price in the report summary.
- The Nasdaq closed down 0.39%, while the US 10-year yield rose to 5.13%.
- Bursa Malaysia saw 799 losers versus 318 gainers, with Construction down 3.55%.
- Malacca Securities flagged 5ER, HEIM, CARLSBG, KLK, SDG and JPG for possible trading opportunities.
Frequently Asked Questions
Does Malacca Securities have a target price for Nvidia (NVDA)?
The report summary does not state a target price for Nvidia, although Malacca Securities says it sees long-term value in the stock. Investors wanting the full valuation detail can obtain the complete report from M+ Online.
Why did Nvidia shares fall after Jensen Huang’s resignation?
Nvidia dropped 4.34% on Thursday as investors reacted to the CEO exit. Malacca Securities argues the departure is a leadership risk rather than evidence of weaker AI demand.
Which Malaysian stocks did Malacca Securities highlight this week?
Malacca Securities pointed to 5E Resources (5ER) as a favoured name, citing its expanded Pasir Gudang capacity of over 500k tonnes. The research house also flagged brewery stocks HEIM and CARLSBG and plantation counters KLK, SDG and JPG for possible trading opportunities.
Source & Attribution
This article summarises a research report published by Malacca Securities Sdn Bhd (M+ Online) on 13 November 2026. All ratings, target prices and forecasts belong to Malacca Securities Research, not to the author of this blog.
Read the original report: M+ Online Research Report | View full PDF
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.
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