Nasdaq futures slide as Nvidia turmoil weighs on AI stocks

what happened

Futures tracking the Nasdaq 100 led Wall Street lower on Thursday after reports that Nvidia's board was weighing the removal of CEO Jensen Huang, following reports of two extramarital affairs involving him. According to Reuters, Nvidia shares dropped 6–7% in premarket trading as investors worried about leadership change at the company that sits at the center of the AI boom.

Chipmakers Intel, Marvell Technology and Micron fell roughly 2–3%, while CoreWeave dropped about 6%. The declines threatened to erase Wednesday's gains, when strong CoreWeave results had helped AI stocks recover some ground.

why it matters

Nvidia's role in the AI boom ties much of the sector's sentiment to the chipmaker, so doubts about its leadership quickly spread across related stocks. Investors are also awaiting the producer price index and weighing expectations for a Federal Reserve rate hike in December, which adds to the nervousness.

market impact

AI and chip stocks: Nvidia leadership doubts pressure the sector and push US index futures lower

• ▼Nasdaq 100 pressure down — Nvidia and AI stock selling drags the index lower
• ▼Nvidia pressure down — uncertainty over leadership after reports of a possible CEO ouster
• ▼CoreWeave pressure down — sell-off spreading through the AI infrastructure sector

tags

instruments