Nvidia CEO resignation rattles AI trade as investors weigh wider fallout

Jensen Huang resigned as CEO of Nvidia on Thursday following revelations of multiple extramarital affairs, triggering a sharp stock sell-off and raising investor concerns about broader implications for the AI trade. Investors warn Huang's departure could impact future business, as he was central to Nvidia's innovation and dealmaking for over three decades. Wall Street firms issued downgrades, citing the leadership vacuum, while analysts note high valuations across the AI sector leave stocks vulnerable to negative news. Some strategists see potential for increased AI regulation under a Democrat-controlled Congress, while others view the risk as largely confined to Nvidia. Investors await Nvidia's earnings next Tuesday for clarity, though longer-term AI growth prospects remain uncertain.