Nvidia Leadership Crisis Ends Tech Rebound, Hits Global AI Stocks
A leadership crisis at Nvidia Corp. halted a tech stock rebound, with shares dropping 8.3% in premarket trading as the board discussed CEO Jensen Huang's future following reports of extramarital affairs, including one with a suspected China spy. Nasdaq 100 futures fell 1.5%. The turmoil threatens the global AI supply chain, with tech stocks falling across Asia and Europe. Nvidia rivals like Advanced Micro Devices and Broadcom gained on bets they could take market share, while oil's advance pushed Treasury yields higher. Analysts called Huang's potential departure an "unequivocal negative" for the AI ecosystem, given his central role in financing and championing the sector. Nvidia is due to report earnings next week, with traders also watching Federal Reserve officials' comments on inflation.