Sources: Nvidia faced pressure to boost its 25% residual value support backstop on a planned $500B AI financing vehicle with asset managers before Huang's exit (Bloomberg)

Nvidia faced pressure to increase its 25% residual value support backstop for a planned $500 billion AI financing vehicle with asset managers prior to the exit of longtime chief executive Jensen Huang, according to Bloomberg. Following Huang's resignation on Thursday, CFO Colette Kress has taken over as interim CEO while the company searches for a permanent successor.

The leadership change occurred after the board met to decide Huang's fate following reports of two extramarital affairs. Free Malaysia Today reports that traders initially reacted by punishing Nvidia shares and those of customers CoreWeave and Naver, while boosting rivals Broadcom and AMD. Shares of Chinese GPU makers Moore Threads, MetaX, and Cambricon also jumped nearly 10%.

New Straits Times notes that Nvidia shares have dropped more than 12 per cent this week and are trading at 12 times expected earnings, their lowest valuation since 2012. While the stock fell more than 5.0 per cent on Thursday, the Financial Times reported that shares largely recovered by the market close as shareholders bought the dip.

Brief written by urgent.news from Techmeme, New Straits Times, Financial Times, Free Malaysia Today, CBS News — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.