Jensen Huang’s abrupt exit stuns Nvidia’s China staff, clouding the outlook in a key market

Jensen Huang, the co-founder of Nvidia, the world's leading designer of chips powering AI models, resigned as CEO of the company amidst a board revolt following revelations of his extra-marital affairs. Chief Financial Officer Colette Kress will serve as interim CEO while the board considers candidates for a permanent replacement.

Nvidia's shares initially plunged 13% at the start of trading in New York, but later moderated to end down 4.3%. The Nasdaq tech-focused index saw a mixed performance, rising and falling throughout the day before finishing lower by 0.4%. Analysts noted that investors were recalibrating potential benefits if Nvidia suffered, with rival companies Broadcom and AMD experiencing gains of over five percent.

Some companies in the tech sector, such as Nebius and CoreWeave, saw sharp declines of 16.8% and 6.9% respectively. However, others like Amazon, Microsoft, and Alphabet's Google saw their stocks rise. Analysts have differing opinions on the impact of Huang's departure on the ongoing AI projects. FHN Financial's Chris Low suggested that the shakeup at Nvidia might not end AI development, but could potentially slow its progress, given the recent US election results showcasing public hostility to data centers.

Meanwhile, oil prices rose after US President Donald Trump expressed his disinterest in a peace deal with Iran, mentioning the country's "hundreds of billions of dollars" and the Strait. European stocks ended higher, with Frankfurt's blue-chip DAX reaching a record high above 27,000 points due to strong corporate earnings and optimism about the artificial intelligence boom.