A plunge for Nvidia’s stock drags Wall Street lower

NEW YORK (AP) — A plunge for Nvidia’s stock is pulling the U.S. market lower, threatening to upend the AI boom that has carried Wall Street to record after record in recent years. The S&P 500 fell 0.7% Thursday. The weakness for AI stocks sent the Nasdaq composite down 1.5%, while the Dow Jones Industrial Average added 127 points. Nvidia tumbled 14% after Jensen Huang, its co-founder and face of the brand, resigned as CEO. Other stocks in the AI industry also fell, though some of Nvidia’s rival chip companies rose. Oil prices swung after President Donald Trump said he’s no longer interested in a deal with Iran.

THIS IS A BREAKING NEWS UPDATE. Check back for updates. AP’s earlier story follows below.

NEW YORK (AP) — World shares were mixed on Thursday as concerns over leadership at chipmaker Nvidia weighed on artificial intelligence -related stocks.

In after-hours trading, Nvidia’s shares fell 8.6% after reports said Nvidia’s board was meeting late Wednesday to discuss the situation surrounding its CEO, Jensen Huang, whose affair with a Chinese woman has raised national security concerns in the U.S.

Nvidia ‘s shares climbed 2.9% on Wednesday. Its shares have fallen after the company said it was investigating Huang, who has admitted to a relationship with a businesswoman who reportedly fed intelligence and advanced chips to China.

The future for the S&P 500 slipped 0.4%, while that for the Dow Jones Industrial Average was nearly unchanged.

In early European trading, France’s CAC 40 added 0.7% and the German DAX rose 1.0% to 26,939.92. Britain’s FTSE 100 jumped 0.3% to 10,868.98.

In Asian trading, Japan’s benchmark Nikkei 225 shed 0.7% to 60,819.36.

In South Korea, the Kospi gave up early gains to slip 0.6% to 5,342.73. Taiwan’s Taiex lost 2.6%. Australia’s S&P/ASX 200 declined nearly 0.1% to 9,146.80.

Hong Kong’s Hang Seng lost 1.3% to 24,008.55, while the Shanghai Composite fell 0.7% to 3,655.83.

Apart from Nvidia’s situation, investors are worried about a potential slowdown in the overall AI industry given longstanding questions about whether it will prove profitable enough to make massive investments in the technology worthwhile.

Analysts also said people might still be taking a risk, snatching up Nvidia shares at what appears to be a discount because of uncertainty over what Huang’s woes might mean for the company.

“There is no credible way to put a precise revenue loss on his departure,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

“Customers buy Nvidia’s computing power, software and networking ecosystem, and those advantages wouldn’t disappear with its CEO,” she said.

Benchmark U.S. crude rose 0.8% to $87.26 a barrel. Brent crude, the international standard, added 0.8% to $93.53 a barrel. Brent has vacillated within a range of $72 to $120 since the war with Iran pushed prices much higher.

In currency trading, the U.S. dollar fell to 159.64 Japanese yen from 159.79 yen. The euro cost $1.1095, up from $1.1091.

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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama

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