Global AI stocks sink as Nvidia CEO’s exit deepens sector sell-off

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Global AI stocks fall as Nvidia CEO Jensen Huang resigns amid scandal and the chipmaker’s leadership crisis deepens. Read more at straitstimes.com.

Jensen Huang’s exit plunges the US$4 trillion (S$5.14 trillion) company into uncertainty and threatens to disrupt an AI ecosystem.

Global AI-linked stocks tumbled on Nov 12 as Nvidia CEO Jensen Huang resigned following a deepening scandal around his affairs, upending the chipmaker’s leadership and posing fresh risks to a sector already reeling with funding and regulatory concerns.

Chief financial officer Colette Kress will take over as interim CEO as Nvidia looks for a permanent successor, the company said.

As the centrepiece of the AI ecosystem, the chipmaker finances infrastructure built around its chips – a strategy that has drawn scrutiny over circular funding and now risks weighing on the sector as its crisis deepens.

Nvidia’s shares fell 8.2% to a more than 16-month low in early trading and its market value was on track to close below US$4 trillion (S$5.14 trillion) for the first time since July 2025.

“Nvidia has been called the ‘Bank of AI’. If they have to take a step back because of what’s going on, will that cut off funding to smaller companies that need it? That’s an open question,” said Joe Saluzzi, partner and co-head of equity trading at Themis Trading.

Nvidia-backed neocloud firms CoreWeave dropped 9.1% after surging more than 27% in the previous session when its earnings ignited a relief rally in AI stocks.

Other neocloud stocks including IREN and Applied Digital were also trading lower. Nebius dropped 16.2% after the company said its 2026 revenue would come in at the low end of its previous forecast.

Nvidia has lost about US$550 billion in market value since the board announced an investigation on Nov 8 into Huang’s relationship with a businesswoman called Alice Huang, who is alleged to be a Chinese spy.

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