Global AI Stocks Sink as Nvidia Crisis Deepens Sector Selloff
The sell-off spread across AI stocks as investors weighed leadership uncertainty at one of the industry’s most influential chipmakers.
- On Thursday, Nvidia shares plunged 7.6% to $160.50 as reports surfaced that the board met Wednesday to consider removing CEO Jensen Huang following allegations of an extramarital affair with a suspected Chinese spy.
- The chipmaker announced Sunday that it had launched an independent investigation into Huang's relationship with businesswoman Alice Huang, who is alleged to be a Chinese spy; the company has lost about $300 billion in market value since.
- Premarket trading saw Nvidia shares fall 7.6% to $163, with short sellers making about $3.8 billion in paper profits according to data analytics firm ORTEX, as the sell-off extended across several AI-related companies.
- "He's the face of Nvidia," said Jun Bei Liu, lead portfolio manager at Ten Cap, warning that the company's role sponsoring AI infrastructure carries "meaningful ramification for what is to come."
- Nvidia is scheduled to report fiscal third-quarter results on November 17, with investors watching for updates on AI chip demand and leadership continuity amid the deepening crisis surrounding Huang.
12 Articles
12 Articles
Global AI stocks sink as Nvidia crisis deepens sector selloff
By Shashwat Chauhan Nov 12 (Reuters) - AI-linked companies fell on Thursday as a deepening scandal around Nvidia CEO Jensen Huang's affairs threaten to upend the chipmaker's leadership, posing fresh risks to the sector already reeling under funding and...
Globes presents its first update on the state of markets around the world • And this morning: Wall Street futures are red in the shadow of reports of the possible ouster of Nvidia CEO Jensen Huang, and the stock fell 8% in late trading • The storm is also shaking Asian stock exchanges and chip suppliers • Investment bank Baird cut its recommendation to "neutral" and warns of a slowdown in AI investments • And in the commodities arena, oil opens …
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