Chip-wreck: Nvidia sheds $600bn on Huang exit

Nvidia, the dominant supplier of chips powering the global artificial intelligence boom, saw its market value plummet by nearly $600bn on Thursday after chief executive Jensen Huang resigned unexpectedly. The sell-off extended to the broader tech sector, with AI cloud computing firm Coreweave also experiencing a six per cent drop.

Huang, who co-founded Nvidia in 1993, had become a key figure in Silicon Valley following the company's transformation into a leader in AI chips. His departure came amid revelations of two extramarital affairs, including one with a woman suspected by US intelligence officials of spying for China. Huang had been CEO for 33 years, and his resignation leaves the company in a leadership vacuum.

Long-serving finance chief Colette Kress has been appointed as interim CEO, and Harvey Jones has been named as the permanent replacement. The company has launched a search for a permanent CEO to fill the void. Nvidia's share price drop is one of the largest single-day losses in stock market history, and the company accounts for about six per cent of the S&P 500, meaning its stock movements can significantly impact the wider US market.

South Korea's tech and chipmaker-heavy Kospi index also closed lower on Thursday. The leadership crisis comes at a critical time for Nvidia, as it is due to report its latest quarterly earnings. Investors are now closely monitoring whether the billions poured into AI infrastructure will generate sufficient returns. Analysts have highlighted the risks that come with CEO succession planning and board composition in technology companies built around influential founders.