Global AI stocks sink as Nvidia CEO Jensen Huang’s exit deepens sector sell-off

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Neoclouds CoreWeave, Nebius and some chip stocks fall Read more at The Business Times.

[BENGALURU/SYDNEY] Global artificial intelligence-linked stocks fell on Thursday (Nov 12) after 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.

AI stocks have struggled after the Democrats swept the midterm elections, including in states opposed to new data centres, stoking fears that tighter regulation could slow the AI infrastructure build-out.

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-backed neocloud firm CoreWeave dropped 9.1 per cent after surging more than 27 per cent in the previous session when its earnings ignited a relief rally in AI stocks.

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Other neocloud stocks including IREN and Applied Digital were also trading lower. Nebius dropped 16.2 per cent after the company said its 2026 revenue would come in at the low end of its previous forecast.

Nvidia has lost more than US$550 billion in market value since the board announced an investigation on Sunday into Huang’s relationship with a businesswoman Alice Huang, who is alleged to be a Chinese spy.

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