Nvidia stock falls after Huang resigns, weighing on broader market

Résumé détaillé

Stocks declined at the opening bell on news that Jensen Huang, one of the most important executives in the AI boom, resigned as CEO of Nvidia.

Major stock indexes declined at the opening bell on news that Jensen Huang, one of the most important executives in the AI boom, was resigning effective immediately as CEO of Nvidia.

Shares of Nvidia sank 12% at the open, before quickly erasing some losses, as the company and its investors grappled with multiple scandals that have engulfed its founder and now-former CEO, Jensen Huang.

Throughout the day, the company was among the biggest decliners on the Nasdaq, Dow Jones Industrial Average and S&P 500 indexes.

Major indexes also faced choppy trading. All three were slightly higher after following a similar pattern to Nvidia’s: falling, rising and then declining again.

Without a formal succession plan, the company that designs the chips powering the entire AI sector was thrust into crisis. It’s a pivotal moment for AI, with Anthropic gearing up for its potentially trillion-dollar-plus initial public offering next week.

Anthropic is highly reliant on Nvidia’s chips and has entered into hundreds of billions of dollars worth of contracts with cloud providers to rent them.

Nvidia named its longtime chief financial officer as its interim leader. Huang’s departure from Nvidia came after a New York Times report said the CEO had had a relationship with an executive at Nvidia who reports to him.

That came right on the heels of his admission on Sunday that he was “unfaithful” to his wife, an announcement that was released after the Financial Times reported Saturday that Huang had had a relationship with a woman whom a source told NBC News was a Chinese spy.

There are few companies as important to the artificial intelligence industry as Nvidia.

Début de l'article, extrait de NBC News. Pour lire la suite, ouvrez l'article chez le média.