Nvidia CEO Ouster Could Trigger $1 Trillion Market Shock

Analyst Dan Ives estimates that ousting Nvidia CEO Jensen Huang could trigger a 25-30% stock drop, erasing over $1 trillion in market value. Given Nvidia's massive index weight, such a decline alone could reduce the S&P 500 by about 2.2% and the Nasdaq 100 by 2.5%. The reports that Nvidia's board is preparing to discuss Huang's future, following revelations of a second alleged relationship with an employee and ties to Chinese intelligence, have already rattled investors. The stock fell about 8% in after-hours trading on Wednesday. Ives and other analysts note no clear successor exists, as Huang has led the company for 33 years. A broader concern is that a shock to Nvidia, central to the AI revolution, could trigger sell-offs across other tech and chip stocks, amplifying market damage. The situation also raises "key man risk" and could tighten US export controls on advanced chips to China.