Nvidia's board convened late Wednesday to determine the future of founder and CEO Jensen Huang, according to a source cited by Reuters. The meeting followed a report from The New York Times that Huang had an affair with another company executive who reported to him. Separately, the board had earlier announced it would investigate Huang's relationship with a businesswoman alleged to be a Chinese spy. The two controversies have placed the CEO's position under intense scrutiny.
The uncertainty surrounding Nvidia's leadership sent shockwaves through the market. The company's shares plunged in after-hours trading, falling more than 8% at one point as a wave of broker downgrades hit the stock. The selloff weighed on US equity futures during the Asian session, with S&P 500 e-mini futures down 0.4% and Nasdaq e-mini futures off 1%. The Asian tech supply chain initially held up better but gave up gains later in the trading session.
Nvidia has no clear succession plan, leaving investors to speculate about who might step in if Huang departs. Ian Buck, an architect of the CUDA software system, and Chief Financial Officer Colette Kress are among the possible contenders to become interim CEO, according to the report. The lack of a defined plan adds another layer of uncertainty for a company that has become a bellwether for the AI sector.
The turmoil at Nvidia comes at a sensitive time for the broader semiconductor industry. Chip stocks had been enjoying a broad rally after CoreWeave's earnings eased fears around the health of the AI sector, lifting some of Nvidia's competitors. On Thursday, those gains were partially reversed as investors digested the news. The MSCI's broadest index of Asia-Pacific shares outside Japan fluctuated between gains and losses and was down 1.1%, with Taiwanese shares falling 2.8% and Japan's Nikkei 225 off 0.8%.
Beyond the boardroom, Nvidia faces political pressure. Democratic senators are urging the Trump administration to preserve all documents linked to Nvidia's chip exports to China, signaling that Congress is asking questions about the company's overseas business dealings. The future of Nvidia's financing arrangements with many other companies in its industry is also unclear, according to the report.
In currency markets, the US dollar index, which measures the greenback against a basket of six currencies, was up 0.1% at 103.08, its highest level since April last year, as traders ramped up bets on higher interest rates over the next few months. In early European trade, pan-region futures climbed 0.4%, while German DAX futures and FTSE futures were 0.7% higher.
Investors will be watching a busy economic calendar on Thursday. In the US, earnings from Applied Materials and Cisco Systems are due. In Europe, Allianz, Siemens, and Burberry Group are scheduled to report. Economic data includes the UK's GDP estimate for the third quarter, industrial output, goods trade balance for September, and LSEG/IPSOS primary consumer sentiment for November. Germany will release its current account balance for September and LSEG/IPSOS primary consumer sentiment for November, while France will publish its LSEG/IPSOS primary consumer sentiment for November. The UK also holds a debt auction for 6-year government debt.
The developments at Nvidia are likely to keep semiconductor and AI infrastructure stocks in focus as investors assess the potential impact on the sector's leadership and strategy. With no clear succession plan and multiple investigations underway, the company's next steps remain uncertain.