Nvidia Shares: Leadership Uncertainty Deepens as Scandals Hit Jensen Huang

GLOBAL MARKETS: Nvidia chief executive Jensen Huang is facing growing uncertainty over his position as the company deals with two separate controversies, raising concerns among investors and putting pressure on global technology stocks.

Nvidia’s board met late on Wednesday to discuss Huang’s future, according to a source cited by Reuters. The company’s founder and CEO is facing scrutiny following reports involving his personal relationship with another executive and an alleged connection to a businesswoman suspected of being a Chinese spy.

The New York Times reported late on Wednesday that Huang had an affair with another company executive who reported directly to him. Earlier, Nvidia’s board had said it would investigate his relationship with a businesswoman accused of having links to Chinese intelligence.

Nvidia shares fell sharply in after-hours trading, dropping more than 8% at one point amid a wave of broker downgrades. The sell-off also weighed on US equity futures during Asian trading.

The company has no clear succession plan, leaving uncertainty over who could replace Huang if he steps down. Ian Buck, an architect of Nvidia’s CUDA software platform, and Chief Financial Officer Colette Kress have emerged as possible candidates for an interim leadership role.

Political scrutiny is also increasing. Democratic senators have urged the Trump administration to preserve all documents related to Nvidia’s chip exports to China.

Investors are also assessing the future of Nvidia’s financing arrangements with other companies across the artificial intelligence industry, adding another layer of uncertainty around the company’s business relationships.

Semiconductor stocks had recently rallied after CoreWeave’s earnings eased concerns about the health of the AI sector, helping lift shares of Nvidia’s competitors. However, markets gave back some of those gains on Thursday.

S&P 500 E-mini futures fell 0.4%, while Nasdaq E-mini futures declined 1%. Asian technology stocks initially showed greater resilience but later surrendered their gains.

MSCI’s broadest index of Asia-Pacific shares outside Japan fluctuated between positive and negative territory before falling 1.1%. Taiwan’s stock market declined 2.8%, while Japan’s Nikkei 225 slipped 0.8%.

Currency markets also reflected shifting interest-rate expectations. The US dollar index, which measures the greenback against a basket of six major currencies, rose 0.1% to 103.08, its highest level since April last year, as traders increased bets on higher interest rates over the coming months.

European markets showed a more positive start, with pan-European stock futures rising 0.4% in early trading. German DAX futures and UK FTSE futures both gained 0.7%.