Wall St mixed as Nvidia chief executive Jensen Huang’s exit rattles AI stocks
US stocks have opened mostly lower as investors digested news of Nvidia chief executive Jensen Huang resigning from the company.
The S&P 500 and the Nasdaq Composite indices have fallen as Nvidia chief executive Jensen Huang’s exit unnerved the artificial intelligence trade and higher oil prices prompted investors to retreat to the sidelines.
The AI heavyweight’s shares dropped 7.6 per cent as investors fretted over the industry effects of Huang’s resignation from the company central to the AI boom, following reports of his involvement in a second extramarital affair.
Nvidia’s chief financial officer Colette Kress will take over as interim chief executive officer.
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By continuing you agree to our Terms and Privacy Policy.“It leaves the company rudderless. He was so central to all their strategy, and it just highlights that there’s quite a void there,” said Kathleen Brooks, research director at XTB.
“It does throw the AI trade into a bit more confusion. You don’t have someone who was a cheerleader for AI in the same way that Jensen Huang has.”
AI stocks were also reeling after neocloud company Nebius said its 2026 revenue would come in at the low end of its previous forecast, pulling its shares down 17 per cent.
Peer CoreWeave dropped about 7.0 per cent.
The Philadelphia SE Semiconductor index declined 1.3 per cent as chipmakers Intel, Marvell Technology and Micron fell between 2.8 per cent and 4.2 per cent.
Other data centre-related firms IREN, Applied Digital and Core Scientific fell between 3.0 per cent and 5.0 per cent.
The declines threatened to erase Wednesday’s gains, when strong results from CoreWeave helped AI stocks regain some footing.
However, shares of other “magnificent seven” firms advanced, with Amazon rising 2.3 per cent while Alphabet, Microsoft and Apple traded slightly higher.
Nvidia’s rivals Advanced Micro Devices and Broadcom were up 4.3 per cent and 5.5 per cent respectively.
In early trading on Thursday, the Dow Jones Industrial Average rose 35.53 points, or 0.07 per cent, to 52,522.02, the S&P 500 lost 22.06 points, or 0.29 per cent, to 7,597.32 and the Nasdaq Composite lost 141.55 points, or 0.56 per cent, to 25,322.31.
The S&P 500 tech sector index fell 1.3 per cent, overshadowing gains elsewhere on the benchmark.
Six of 11 major sectors were in the positive territory.
Investors are also gearing up for the release of the Producer Price Index on Friday, which could help shape inflation expectations after data earlier this week showed consumer prices rose more than expected last month.
A drop in oil prices so far in November has helped ease some concerns about price pressures but investors remain wary of geopolitical risks in the Middle East.
Brent crude futures rose 0.8 per cent on Thursday, after US President Donald Trump said “we don’t need a deal with Iran”.
Traders are pricing in a December rate hike by the Federal Reserve as a certainty, with about a 13 per cent chance of an outsized 50-basis-point increase, according to the CME FedWatch tool.
“Energy effects will take longer to fade. Oil prices have remained near $US100 per barrel for much of the year, extending their contribution to inflation,” said Josh Hirt, senior US economist at Vanguard.
“But absent a renewed and sustained increase in prices, that contribution should remain limited.”
Separately, Michael Saylor’s Strategy fell 6.6 per cent after index operator MSCI said it will remove the stock from its global indices.
Declining issues outnumbered advancers by a 1.99-to-1 ratio on the NYSE, and by a 2.68-to-1 ratio on the Nasdaq.
The S&P 500 posted 16 new 52-week highs and one new low while the Nasdaq Composite recorded 27 new highs and 101 new lows.
