Sunrun, PacBio, and Novavax stocks trade down, what you need to know
What happened?
A number of stocks fell in the afternoon session after revelations surrounding leadership uncertainty at Nvidia and the resignation of Chief Executive Jensen Huang triggered broad declines across the artificial intelligence industry.
As reported by AP News, the sudden leadership shakeup at the world's preeminent AI chipmaker sent shockwaves throughout global financial markets. Nvidia has served as the foundational pillar for the generative AI boom, supplying high-performance graphics processing units that power complex machine learning models across major tech enterprises.
Huang's departure follows an emergency board review prompted by disclosures of two extramarital relationships, one of which was with a direct report, CNBC and The New York Times reported.
Investors and analysts have increasingly questioned whether massive spending on data centers and artificial intelligence infrastructure will yield timely returns. With the industry's primary bellwether facing sudden executive transition, broader technology and AI-related shares experienced selling pressure as market participants reassessed near-term growth trajectories and supply chain stability.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Renewable energy company Sunrun fell 4%. Is now the time to buy Sunrun? Access our full analysis report here, it’s free.
- Genomics & sequencing company PacBio fell 2.1%. Is now the time to buy PacBio? Access our full analysis report here, it’s free.
- Therapeutics company Novavax fell 6%. Is now the time to buy Novavax? Access our full analysis report here, it’s free.
Zooming in on Novavax
Novavax’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 8.8% on the news that the company reported third-quarter 2026 financial results and raised its full-year adjusted total revenue outlook. Total revenue for the quarter was $68 million. Novavax raised its full-year 2026 adjusted total revenue outlook by $145 million to a $400 million mid-point. In addition, the company received a $125 million milestone after Sanofi initiated a Phase 3 combination vaccine trial in Europe. Novavax recorded a third-quarter 2026 net loss of $31 million compared to a net loss of $202 million for the same timeframe in 2025.
Novavax is up 31.6% since the beginning of the year, but at $9.39 per share, it is still trading 26.8% below its 52-week high of $12.82 from October 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Novavax’s shares 5 years ago would now be looking at only $55.24.
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