Shares of Nvidia fell more than 11 percent in pre‑market trading on Thursday after the company’s co‑founder and chief executive, Jensen Huang, stepped down. The move sent ripples through global markets, wiping roughly $1 trillion from Nvidia’s market value this month alone.
The board named Chief Financial Officer Colette Kress as interim chief executive. Investors now face uncertainty about the sustainability of the artificial‑intelligence trade and how leadership changes at the world’s most valuable chipmaker could affect the broader economy.
Major market indexes in Asia, where many of Nvidia’s partners and rivals are based, mostly declined. Taiwan’s TSMC, which manufactures chips designed by Nvidia, fell more than 2 percent, while South Korea’s Samsung gained 1 percent. European tech stocks were largely flat, though the region’s largest chipmaker, ASML, slipped over 2 percent.
In the United States, Nasdaq futures slipped less than 1 percent in pre‑market trading. Shares of Nvidia’s U.S. rivals, including AMD and Broadcom, rose more than 2 percent each. The broader S&P 500 index was set to open slightly lower.
Analysts have begun downgrading their forecasts for Nvidia, citing the lack of a formal succession plan and concerns over governance. Some, such as Bernstein and RBC Capital Markets, sharply lowered their price targets, while others, including Wells Fargo and Mizuho, maintained bullish views but noted the likelihood that Huang would not remain CEO for long.
Despite the turmoil, Nvidia is still expected to generate well over $200 billion in profit this year, driven by high demand for its chips as tech companies build AI data centers. The company’s stock, however, is down about a third from its October peak, placing it deep in a bear market.
As the board navigates the transition, investors will be watching closely to see how the company’s leadership changes affect its role in the AI boom and its influence on major market indexes.
