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Nvidia shares plunged more than 7% in premarket trading Thursday as reports that the company’s board was weighing the future of CEO Jensen Huang rattled investors and pressured stocks tied to the artificial intelligence industry.
Shares of Nvidia fell 7.6% to $160.50 shortly before 8 a.m. ET, according to market data, down $13.23 from Wednesday’s closing price of $173.73.
The sell-off extended across several AI-related companies and weighed on broader U.S. stock futures, underscoring investor concerns about a potential leadership shake-up at one of the world’s most influential chipmakers.
Nasdaq 100 futures fell 0.86% Thursday morning, 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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The selling extended to several companies tied to the AI industry. Intel, Marvell Technology and Micron Technology fell between 2.7% and 3.5% in premarket trading, while AI infrastructure company CoreWeave dropped approximately 7%.
Meanwhile, Nvidia rivals Advanced Micro Devices and Broadcom moved in the opposite direction, gaining 2.3% and 1.4%, respectively.
The market turmoil followed a Wall Street Journal report that Nvidia’s board met Wednesday to consider whether to remove Huang. The reported deliberations came amid scrutiny of two extramarital affairs involving the longtime executive, including one with a woman suspected of having ties to Chinese intelligence.
Nvidia has not publicly announced a decision to replace Huang.
The chipmaker announced Sunday that it had launched an independent investigation into reports that Huang had been targeted by a foreign intelligence operation. A committee of independent directors, assisted by outside counsel, is overseeing the review.
In its statement, Nvidia said it had no reason to believe national security or company secrets had been compromised and expressed confidence in Huang and his leadership team.
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The potential departure of Huang would raise questions about leadership continuity at Nvidia, whose processors are central to the rapid expansion of artificial intelligence infrastructure.
Huang co-founded Nvidia in 1993 and has served as its chief executive throughout the company’s rise to become a dominant supplier of AI processors.
The leadership uncertainty also comes at a closely watched moment for Nvidia’s business, with investors preparing to assess demand for its AI chips and data center products in the company’s upcoming quarterly results.
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Nvidia is scheduled to report its fiscal third-quarter results Nov. 17, when investors will be watching for updates on AI chip demand and the company’s data center business.
Reuters contributed to this report.
