Jensen Huang, the head of Nvidia, is stepping down as chairman, CEO, and member of the board of directors, effective immediately.
It should be noted that Nvidia’s board of directors announced on Sunday that it had launched an investigation into Jensen Huang, following his admission that he had been in a romantic relationship with Alice Huang, a woman accused of spying for China.
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The Chinese woman reportedly used a Hong Kong passport to enter Taiwan, the island’s Immigration Agency announced on Wednesday, with authorities investigating the incident. She is a former executive at Megaspeed (based in Singapore), and U.S. officials believe she was working for Chinese intelligence services. Beijing has rejected the espionage allegations.
Pressure on Wall Street futures due to Nvidia’s decline
Meanwhile, futures contracts for Wall Street’s major stock indices fell on Thursday, with the Nasdaq 100 posting the biggest losses, as the sharp drop in Nvidia’s stock weighed on investor sentiment toward companies associated with artificial intelligence (AI).
Nvidia’s stock fell 7.7% in premarket trading, following reports that the company’s board of directors is considering removing its CEO, Jensen Huang, amid reports of a second extramarital affair by the company’s CEO. These developments have raised concerns among investors about the potential impact of a leadership change at a company at the forefront of the artificial intelligence boom.
At 7:03 a.m. Eastern Time, Dow Jones futures were up 16 points, or 0.03%, while S&P 500 futures were down 30.5 points, or 0.4%. Nasdaq 100 futures were down 246.25 points, or 0.86%.
Shares of semiconductor manufacturers Intel, Marvell Technology, and Micron were down between 2.7% and 3.5%, while artificial intelligence infrastructure company CoreWeave posted losses of about 7%. Peer company Nebius fell 0.4% ahead of the announcement of its financial results.
Shares of companies operating in the data center sector, including IREN, Applied Digital, and Core Scientific, were also down.
In contrast, Nvidia’s competitors, Advanced Micro Devices and Broadcom, posted gains of 2.3% and 1.4%, respectively.
SEE ALSO: Chinese Spy Linked to Nvidia CEO Arrested in Taiwan on a Hong Kong Passport | AlphaNews
