Nvidia shares plunge as Jensen Huang resigns as CEO - The Independent

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Global stock markets faced renewed volatility on Thursday as a spy scandal and cheating allegations saw Jensen Huang step down as Nvidia CEO.

Asian markets suffered overnight falls after reports that Nvidia's board had met to determine the fate of its long-time chief executive and co-founder, sending the company's shares diving more than 10 per cent in US pre-market trading.

Chinese tech firms using Nvidia chips for AI models also fell heavily in Hong Kong. Alibaba and Tencent tumbled 6.7 per cent and 2.6 per cent respectively on fears Washington may restrict access to offshore data centres housing advanced processors.

Investors also appear worried about a potential slowdown in the AI industry, with questions over whether major firms like Anthropic and OpenAI can become profitable.

Both companies reported billions in losses last year, with both AI giants currently preparing plans to go public.

A series of reports indicated Nvidia's board met late on Wednesday to consider ousting Mr Huang following allegations of an affair with a suspected spy for China.

The New York Times also reported that Mr Huang had an affair with a fellow Nvidia executive.

News of affairs had seen Nvidia’s share price fall ahead of Mr Huang’s announcement that he would be stepping down.

The company’s board of directors announced that Colette Kress would serve as interim CEO, having previously served as Nvidia’s executive vice president and chief financial officer.

“Colette has helped lead Nvidia through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position," said Harvey Jones of the board of directors in a statement.

It remains unclear who will lead Nvidia in the long-term. In the meantime, Chinese domestic GPU makers surged on Thursday on expectations that Nvidia's troubles could help local chip suppliers win greater market share.

Saxo Bank's Chief Investment Strategist Charu Chanana said Nvidia earnings next Tuesday mark the next key test.

"Strong results could reaffirm the AI growth story, but may not fully remove the governance discount," she said.