Nasdaq futures slip as Nvidia falls 8% on report its board may oust CEO Huang

what happened

Nasdaq-100 futures dropped nearly 1% on Wednesday evening after Nvidia shares lost roughly 8% in after-hours trading. The move followed a Wall Street Journal report that the chipmaker's board was getting ready to remove CEO Jensen Huang. Earlier, The New York Times had reported that Huang had an affair with an Nvidia executive who reported to him. Huang himself acknowledged in an internal memo that he had been unfaithful to his wife, though he gave no details.

Shares of AMD and Broadcom rose about 4% and 3% after hours, partly cushioning the index. CoreWeave and Nebius, both major Nvidia customers, along with Intel and Microchip, also fell. The iShares Semiconductor ETF SOXX was down nearly 2%. According to Dow Jones Newswires, citing MarketWatch data, Nvidia made up about 6.3% of the S&P 500 at the end of October, so its stock also reaches many retirement accounts.

why it matters

The PHLX Semiconductor Index is about 20% below its June record, and the Nasdaq Composite has fallen for four straight weeks. For investors, the key question is how leadership uncertainty at the sector's largest company could affect expectations for AI infrastructure spending.

market impact

US chips and indexes: leadership uncertainty at Nvidia pressures the sector and Nasdaq-100

• ▼Nvidia pressure down — leadership uncertainty and reports of a possible CEO change
• ▼Nasdaq-100 pressure down — Nvidia's large index weight drags the index lower
• ▲AMD pressure up — after-hours gains as the sector leader weakens

tags

instruments