Symbolic imageNvidia falls below $4tn as CEO Huang resigns, hitting AI stocks
Nvidia's market value fell below $4 trillion on Thursday after CEO Jensen Huang resigned. AI-linked stocks fell worldwide.
Nvidia said Chief Financial Officer Colette Kress will be interim CEO while it seeks a permanent successor. The board had announced an investigation on Sunday, 8 November, into Huang's relationship with a businesswoman, Alice Huang, whom the Jerusalem Post says is alleged to be a Chinese spy. Nvidia has lost about $300 billion in value since. Shares fell 10.3% in premarket trading to about $163, and Bloomberg reports Nvidia's default risk neared a record high.
Neoclouds and chipmakers
CoreWeave fell 13.6% a day after surging more than 27% on earnings, and Nebius dropped 20% after guiding 2026 revenue to the low end of its range. Micron lost 5.8% and Dell about 7%, while AMD and Broadcom rose 2% and 1.4% on hopes of gains from Nvidia's turmoil.
Financing model under scrutiny
Jun Bei Liu of Ten Cap said nearly all new cloud data center firms were sponsored by Nvidia in a circular financing world. AI stocks were already weak after the Democratic midterm sweep raised fears of tighter data center rules.
Wider markets
Japan and South Korea closed nearly 0.7% lower, and European tech stocks fell about 1%. Nvidia trades at about 12 times forward earnings, its lowest since November 2012, according to LSEG.