AI-linked shares fell as Nvidia dropped 7.8% in premarket trading, putting its market value on course to slip below $4 trillion. CoreWeave fell 6%, Nebius dropped 10.7%, while AMD and Broadcom rose as investors saw potential opportunities for rivals.
AI-linked companies fell on Thursday as a deepening scandal around Nvidia CEO Jensen Huang raised fresh risks for a sector already facing funding and regulatory concerns. Nvidia shares fell 7.8% in premarket trading, putting its market value on course to drop below $4 trillion for the first time since July 2025, as its board considered whether to oust Huang.
Nvidia-backed CoreWeave dropped 6% after rising more than 27% in the previous session, while Nebius fell 10.7% after reporting third-quarter results. Micron Technology fell 3.4%; Sandisk and Western Digital eased 5.1% and 3.2%. AMD and Broadcom rose 1.7% and 0.8%, respectively, on expectations that Nvidia's turmoil could create opportunities for rivals.
Nvidia has lost about $300 billion in market value since its board announced an investigation on Sunday into Huang's relationship with a businesswoman identified as Alice Huang, who is alleged to be a Chinese spy. The article also cites scrutiny of Nvidia's financing of infrastructure built around its chips and concerns that regulation could slow data-center construction.
