The chipmaker's stock dropped 8.2 per cent to reach a 16-month low, wiping out more than US$550 billion in market value since Sunday. The broader sell-off hit regional markets across Europe and Asia, severely impacting infrastructure partners like CoreWeave and Nebius. However, rival semiconductor firms such as AMD and Broadcom managed to post gains alongside select hyperscalers during the downturn.
Key points
Leadership instability at Nvidia has raised severe doubts regarding the continued financi…: Leadership instability at Nvidia has raised severe doubts regarding the continued financing of global artificial intelligence infrastructure.
Major hyperscalers including Alphabet, Amazon, and Microsoft saw modest gains as competit…: Major hyperscalers including Alphabet, Amazon, and Microsoft saw modest gains as competitors attempted to capitalize on Nvidia's setback.
Technology markets across Japan, South Korea, and Europe suffered widespread downturns fo…: Technology markets across Japan, South Korea, and Europe suffered widespread downturns following the sudden departure of the chief executive.
Sources checked by our analysis pipeline: 1
Global AI-linked stocks tumbled on Thursday as Nvidia CEO Jensen Huang resigned following a deepening scandal around his affairs, upending the chipmaker's leadership and posing fresh risks to a sector already reeling with funding and regulatory concerns.
Chief Financial Officer Colette Kress will take over as interim CEO as Nvidia looks for a permanent successor, the company said.
As the centrepiece of the AI ecosystem, the chipmaker finances infrastructure built around its chips - a strategy that has drawn scrutiny over circular funding and now risks weighing on the sector as its crisis deepens.
Nvidia's shares fell 8.2 per cent to a more than 16-month low in early trading and its market value was on track to close below US$4 trillion for the first time since July 2025.
"Nvidia has been called the 'Bank of AI'. If they have to take a step back because of what's going on, will that cut off funding to smaller companies that need it? That's an open question," said Joe Saluzzi, partner and co-head of equity trading at Themis Trading.
Equities in Denmark secured positive momentum through the final bell to lift the domestic market. The benchmark average captured modest gains as trading concluded for the day. These upward movements reflect sustained buyer interest across major shares listed in Copenhagen.
Market participants are observing positive price momentum for the company during today's trading session. However, the precise catalysts fueling the current rally remain undisclosed as no additional explanatory details have been released. Investors and analysts are left awaiting further clarification regarding the fundamental reasons behind the upward move.
Market participants are closely watching equity movements as shares of the company advance during the current trading session. This sudden upward momentum has led investors to analyze the underlying drivers behind the intraday gains. Understanding the specific factors fueling this price trajectory remains critical for assessing short-term market sentiment.