Global AI stocks sink as Nvidia CEO Jensen Huang’s exit deepens sector sell-off
Neoclouds CoreWeave, Nebius and some chip stocks fall
Global AI-linked stocks experienced a sharp decline on Thursday (Nov 12) following the resignation of Nvidia CEO Jensen Huang. The board announced an investigation into Huang's relationship with a businesswoman alleged to be a Chinese spy. Huang is seen as the face of Nvidia, and his departure has posed fresh risks to the chipmaker's leadership and the broader AI sector, which already faced funding and regulatory concerns.
Nvidia's shares dropped 10.3% in pre-market trading, putting its market value on track to fall below US$4 trillion for the first time since July 2025. CoreWeave, a neocloud firm backed by Nvidia, fell 13.6% after surging earlier in the week. Other neocloud stocks like IREN and Applied Digital also traded lower. CoreWeave's revenue for 2026 was reported to be at the low end of its previous forecast.
AMD and Broadcom, competitors of Nvidia, saw gains of 2% and 1.4%, respectively, as they could potentially benefit from the turmoil at Nvidia.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 4 other outlets
- Global AI stocks sink as Nvidia crisis deepens sector selloff channelnewsasia.com
- Global AI stocks sink as Nvidia CEO’s exit deepens sector sell-off straitstimes.com
- S&P 500, Nasdaq fall as Nvidia CEO’s exit rattles AI stocks investing.com
- Nvidia Punches a Hole in Bull Case for AI Stocks bloomberg.com
