Jensen hangs on as Nvidia tumbles
NVDA•Nvidia shares fell more than 8% at one point in after-hours trading after its board met to consider CEO Jensen Huang’s future amid two scandals. US equity futures also fell, with Nasdaq futures down 1%.
1. Board weighs Huang’s future
Nvidia’s board met late Wednesday to decide the fate of founder and CEO Jensen Huang, a source said. Huang was reportedly involved in an affair with an executive who reported to him, and the board had said it would investigate his relationship with a businesswoman alleged to be a Chinese spy. The company has no clear succession plan; CUDA architect Ian Buck and CFO Colette Kress are among possible interim CEO candidates.
2. Markets give back gains
Nvidia shares fell more than 8% at one point in after-hours trading amid broker downgrades, weighing on US equity futures. On Thursday, S&P 500 e-mini futures fell 0.4% and Nasdaq e-mini futures fell 1%. Asian technology shares initially held up before giving back gains; Taiwanese shares fell 2.8%, while Japan’s Nikkei 225 lost 0.8%.
3. Other developments
Democratic senators urged the Trump administration to preserve documents linked to Nvidia chip exports to China. The future of Nvidia’s financing arrangements with other companies in the industry was also unclear. European futures rose in early trade, with pan-region futures up 0.4% and German DAX and FTSE futures each up 0.7%.
