Nvidia shares plunge more than 7% in premarket trading as CEO uncertainty rattles AI stocks

Résumé détaillé

Nvidia shares plunged more than 10% in premarket trading after CEO Jensen Huang stepped down. CFO Colette Kress will lead the AI chipmaker on an interim basis.

NVIDIA stock sinks in pre-market trading following a report that the board is preparing to oust CEO Jensen Huang. Constellation Research founder and CEO R 'Ray' Wang to analyzes the company's outlook.

Nvidia shares plunged more than 10% in premarket trading Thursday after CEO Jensen Huang stepped down, sending shockwaves through the artificial intelligence industry and pressuring stocks tied to the sector.

Huang's departure comes after reports that Nvidia's board was considering removing the longtime executive amid scrutiny of his personal conduct and alleged ties to a woman suspected of working for Chinese intelligence.

Chief Financial Officer Colette Kress will serve as interim CEO while Nvidia searches for a permanent replacement, the company said Thursday, according to Reuters. The chipmaker also named former Synopsys CEO and board member Harvey Jones as its first-ever board chairman. Huang will leave Nvidia's board as well.

Nvidia shares fell more than 10% in premarket trading following the announcement, extending an earlier decline of 7.6% that had sent the stock to $160.50 shortly before 8 a.m. ET.

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Nvidia logo displayed on a phone screen and microchip and are seen in this illustration photo taken in Krakow, Poland on July 19, 2023. (Jakub Porzycki/NurPhoto / Getty Images)

The sell-off extended across several AI-related companies and weighed on broader U.S. stock futures, highlighting concerns about the impact of Huang's departure on one of the world's most influential chipmakers.

Earlier Thursday, Nasdaq 100 futures fell 0.86%, while S&P 500 futures declined 0.4%, according to data cited by Reuters. Dow futures were little changed, edging up 0.03%.

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