HK, region take toll as Nvidia fate hangs in balance
Asian shares and US futures declined on Thursday as concerns over leadership at chipmaker Nvidia weighed on artificial intelligence-related stocks. In Hong Kong, the benchmark Hang Seng Index closed down 307 points, or 1.3 percent, to 24,008 on turnover of HK$202.65 billion. The tech index plunged 95 points, or 2.4 percent, to 3,931 while the China enterprises index fell 114 points, or 1.4…
Asian markets and US futures slipped on Thursday amid worries over the leadership at chipmaker Nvidia. In Hong Kong, the Hang Seng Index dropped 307 points, or 1.3%, to 24,008. The tech-focused index fell 95 points, or 2.4%, to 3,931. The Shanghai Composite Index dropped 24 points, or 0.67%, to 3,655. The Shenzhen Component Index declined 191 points, or 1.68%, to 11,197. The ChiNext Index fell 62 points, or 2.44%, to 2,509.
After-hours trading saw Nvidia's shares drop 8.6%, following reports that the company's board met late Wednesday to discuss issues surrounding its CEO, Jensen Huang, and his extramarital affairs. Nvidia's shares had gained 2.9% on Wednesday, but have since fallen after the company announced it was investigating Huang, who admitted to a relationship with a businesswoman. Huang, co-founder of Nvidia, is also accused of another affair with a vice president of healthcare at the company.
The tech company's board was set to meet to decide Huang's fate, according to reports. Huang's leadership has been crucial to Nvidia's success, with his advanced chips vital to the AI boom that has fueled stock market gains worldwide. However, the focus now shifts to his potential departure, with investors questioning the company's future without a clear succession plan.
Experts note that Nvidia's technological edge, including its CUDA software ecosystem and customer relationships, remains strong even without Huang. Nonetheless, his absence may lead investors to reassess the company's long-term prospects.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
