Shares Slide 7% Early: Nvidia Tumbles Amid Questions About CEO Jensen Huang’s Future
Stock falls before trading
Nvidia shares dropped before markets opened Thursday, reaching $161.37, a 7% decline. The price was 34% below the company’s record high set just over a month earlier. The stock had already faced several weeks of strain. Coverage of Huang’s personal relationships and investor concerns over a possible artificial-intelligence bubble have both contributed to the pressure.
Questions over Huang’s role
Dan Ives, a partner and senior managing director at Yorkville Ives & Co., wrote that he could no longer see Huang leading Nvidia as CEO and said the company should be valued without him in that role. The account also described a separate reported affair with a woman suspected of being a Chinese spy.
Broader market effects
Nvidia’s value exceeds $4 trillion, and the company has played a major part in the technology sector’s rise. It was among the factors behind the Nasdaq Composite’s gains for much of the year, as well as its 7% slide over the past month.
Shares of rivals AMD, also known as Advanced Micro Devices, and Broadcom moved sharply higher as Nvidia faced the crisis. CoreWeave shares fell nearly 9%; Nvidia holds an approximately 13% stake in the data center and cloud company.
Key points
- Nvidia fell 7% to $161.37 before Thursday’s opening bell.
- Its shares stood 34% below a record reached just over a month earlier.
- Analysts said reports about Huang’s relationships could prompt the board to remove him.
- AMD and Broadcom rose, while CoreWeave dropped nearly 9%.