Nvidia tanks 10% as investors consider future without CEO Jensen Huang

Résumé détaillé

Turmoil deepens ...

Nvidia Corp’s stock sank in extended trading Wednesday as investors grappled with the possibility of the company without CEO Jensen Huang at the helm.

Its shares tumbled 10% in late trading overnight. The stock began to fall in post market trading following a New York Times report that the CEO had a relationship with a direct report. Losses extended after Wall Street Journal reported Nvidia’s board is preparing to oust Huang, who over the weekend had admitted to having a separate affair with an alleged Chinese spy.

Read: Nvidia board meets on Huang’s fate after affairs Nvidia CEO’s affair engulfs AI giant in Chinese spying probe

“It is going to be a very challenging situation,” said Michael O’Rourke, chief market strategist at Jonestrading.

“Jensen had forecast 70% sales growth this year. With the vendor financing and the aggressive tactics, his successor will spend the next year putting out fires and cleaning up messes.”

Other AI-linked stocks followed shares of Nvidia lower in post market trading. Shares of CoreWeave Inc shed more than 5%, Intel Corp and Dell Technologies Inc each fell 3% and Super Micro Computer Inc declined more than 4%.

Nvidia shares have been under pressure amid growing concern around the strength and longevity of the artificial intelligence trade.

The chipmaker is scheduled to report quarterly results on 17 November.

It “will be interesting how it handles next week’s earnings call. Their CFO can handle the numbers but markets will want more on changes to the governance,” said Dec Mullarkey of SLC Management.

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