Taiex plunges over 1,100 points amid Nvidia controversy

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Shares in Taiwan plunged over 1,100 points Thursday as investors feared a sell-off on Wall Street following heavy losses in Nvidia futures amid controversy surrounding its CEO Jensen Huang (黃仁勳), dealers said.

Taipei, Nov. 12 (CNA) Shares in Taiwan plunged over 1,100 points Thursday as investors feared a sell-off on Wall Street following heavy losses in Nvidia futures amid controversy surrounding its CEO Jensen Huang (黃仁勳), dealers said.

The Taiex, the Taiwan Stock Exchange's benchmark index, ended down 1,165.28 points, or 2.63 percent, at 43,091.87 after moving between 42,943.50 and 44,525.24. Turnover totaled NT$1.01 trillion (US$30.82 billion).

The market traded above the previous closing level for most of the morning session before turning lower around noon, with losses accelerating later in the afternoon, dealers said.

"Market sentiment was hurt by an approximately 8 percent decline in Nvidia's shares in after-hours trading. Many investors feared the weakness of the IC [integrated circuit] designer will spread to other AI-related stocks when the U.S. markets open today," equity analyst Tsai Ming-han (蔡明翰) said.

"The market turned cautious as Nvidia's board is reportedly discussing whether to remove Huang, one of the most important figures in the current AI era, over allegations concerning his personal relationships," Tsai said.

Media reports alleged that Huang had an affair with an Nvidia employee, following his admission earlier this week that he had an affair with another woman who media reports alleged was a Chinese spy.

Contract chipmaker Taiwan Semiconductor Manufacturing Co., which accounts for over 40 percent of the market's total capitalization, reversed earlier gains to close down 2.30 percent at NT$2,340.00, contributing about 440 points to the Taiex's decline.

Selling also spread to other semiconductor stocks, with smartphone IC designer MediaTek Inc. falling 3.51 percent to NT$3,850.00, memory chip supplier Nanya Plastics Corp. dropping 3.68 percent to NT$379.50, and IC packaging and testing firm ASE Technology Holding Co. losing 5.02 percent to NT$586.00.

iPhone assembler and artificial intelligence (AI) server maker Hon Hai Precision Industry Co.

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