Nvidia shares plunge 12 per cent as Jensen Huang steps down as CEO
US stock futures declined on Thursday after the leadership change at the $4 trillion chipmaker triggered a sell-off in AI stocks.
Nvidia shares fell 12.50 per cent in pre-market trading on Thursday after Jensen Huang stepped down as the chief executive officer of the chipmaker, according to the Times of India.
The leadership change at the $4 trillion company caused US stock futures to slide, with Nasdaq futures dropping 352.25 points, or 1.24 per cent, to 28,121.
The company announced that Colette Kress has taken over as interim CEO while a permanent successor is sought.
The Nvidia board met on Wednesday to discuss Huang's position following reports of an affair with a Chinese businesswoman suspected by US authorities of spying for Beijing, as well as an alleged affair with a senior executive who reported to him.
The sell-off extended to other artificial intelligence-linked companies, including Oracle, which fell 3 per cent, Micron Technology, which dropped nearly 5 per cent, and Intel, which declined more than 3 per cent.
Investors are now looking toward Nvidia's earnings next Tuesday for further information on the AI sector.