Nvidia CEO resigns amid spy scandal, sending AI stocks tumbling

jpost.com —

Global AI-linked stocks fell sharply on Thursday after Nvidia CEO Jensen Huang resigned amid a scandal involving his relationship with a woman alleged to be a Chinese spy, upending the chipmaker's leadership and threatening the sector's stability. CFO Colette Kress will serve as interim CEO. Nvidia's shares slid 10.3% in premarket trading, putting its market value on course to drop below $4 trillion for the first time since July 2025. The company has lost about $300 billion in market value since the board announced an investigation on Sunday. Nvidia-backed neocloud firms like CoreWeave fell 13.6%, while other tech stocks, including Micron, Sandisk, and Dell, also declined. The scandal deepens concerns over Nvidia's circular financing model, where it funds infrastructure built around its chips. AI stocks had already struggled after the Democrats swept the midterm elections, stoking fears of tighter regulation on data centers. Rivals AMD and Broadcom rose on expectations the turmoil could create opportunities.


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