Nvidia stock plunges over 8% after close amid reports of potential CEO ouster
Reports of a potential ouster of Jensen Huang impacted global financial markets.
Translated by Qiyas from السياسة — Original source
Global markets showed mixed performance at the start of Asian trading on Thursday, amid pressure on US stock futures following an 8% drop in Nvidia’s shares in after-hours trading, triggered by reports that its CEO, Jensen Huang, might be ousted.
Reuters, citing a knowledgeable source, reported that the company’s board was scheduled to meet on Wednesday evening to discuss Huang’s future, following allegations of a personal relationship with a woman suspected of ties to Chinese intelligence agencies.
The New York Times also reported that Huang had an affair with a female executive who reported directly to him. Nvidia has not yet announced any decision regarding the future of its CEO.
Jake Dollarhide, CEO of Longbow Asset Management, said the developments carry negative implications for the company, ruling out the board’s decision to oust Huang before finding a prominent tech figure capable of replacing him, given the pivotal role of Nvidia’s processors in the artificial intelligence industry.
The company’s share losses were reflected in S&P 500 futures, which fell by 0.4%, while Asian markets showed mixed performance.
South Korea’s KOSPI index rose by 0.2%, Taiwanese stocks gained 0.5%, and Japan’s Nikkei 225 index increased by the same percentage. Meanwhile, the MSCI Asia Pacific ex-Japan index declined by 0.1%, weighed down by losses in Hong Kong stocks.
US stocks had closed Wednesday’s session higher, with the S&P 500 rising by 1.3%, nearing recovery of losses recorded since last week’s US midterm elections.
Analysts at Westpac attributed Wall Street’s gains to renewed optimism in the AI sector, supported by positive developments at CoreWeave and Anthropic.
In the currency market, the dollar index stabilized at 102.87 points during Asian trading, near its highest level since April 9, 2025, after rising 0.6% on Wednesday, as investors reassessed their expectations for US interest rates.
Data from CME Group’s FedWatch tool showed that traders priced in an 87.3% probability of the Federal Reserve raising interest rates by 25 basis points at its meeting on December 8-9, compared to a 12.7% chance of a larger 50-basis-point hike.
In cryptocurrency markets, Bitcoin fell 0.9% to $73,617.58, while Ether dropped by the same percentage to $2,049.44.
