Markets whiplashed as Huang quits Nvidia

Jensen Huang's resignation as Nvidia's CEO sent shockwaves through markets on Thursday, November 12th. The AI powerhouse's co-founder stepped down amidst a board revolt following allegations of two extramarital affairs, including one with a woman suspected of espionage for China. Chief Financial Officer Colette Kress will serve as interim CEO while the board considers candidates for a permanent replacement. Nvidia's shares plummeted 13% at the opening bell, only to settle down 4.3% by the end of trading.

The tech-focused Nasdaq experienced a rollercoaster day, surging before closing 0.4% lower. This resilience was partly attributed to investors recalibrating who would benefit from Nvidia's setbacks, with Broadcom and AMD both surging more than 5%. Other tech giants, such as Amazon, Microsoft, and Alphabet, saw mixed results.

Although some analysts believe Huang's departure may not significantly impact ongoing AI projects, FHN Financial's Chris Low argued that the shakeup at Nvidia coincides with public hostility toward data centers following the recent US elections. Low noted that a slowdown in AI development could be beneficial for inflation and interest rates.

Meanwhile, oil prices surged as US President Donald Trump expressed a reluctance to accept a potential peace deal with Iran. European stocks, including the DAX, ended the day on a high note, buoyed by strong corporate earnings and optimism surrounding the artificial intelligence boom.