Nvidia shares fall as board weighs whether to oust CEO Jensen Huang

what happened

Asian stock markets wobbled on Thursday after Nvidia shares fell more than 8% in after-hours trading. Reuters reported that the chip maker's board may oust longtime chief executive Jensen Huang, with a meeting set for late Wednesday. A source familiar with the matter said the board was gathering to decide.

The move follows allegations that Huang had an affair with a suspected Chinese spy. The New York Times also reported that he had an affair with an executive who reported to him. Nvidia is the dominant supplier of AI processors, so the controversy reaches well beyond one company.

S&P 500 e-mini futures slipped 0.4%. Japan's Nikkei rose 0.5%, South Korea's Kospi gained 0.2%, and MSCI's Asia-Pacific index excluding Japan dipped 0.1%. The dollar index held near 102.87, its highest level since April 9 last year, as traders priced in a likely Federal Reserve rate hike in December. Bitcoin slipped 0.9% to $73,617.58.

why it matters

The key question for markets is whether Huang stays at the helm of Nvidia, given the company's central role in the AI trade. Longbow Asset Management CEO Jake Dollarhide said the board would likely wait for a well-known replacement before acting. Expectations of tighter Fed policy are also keeping the dollar firm.

market impact

Nvidia and the AI sector: leadership risk weighs on the shares; the dollar is supported by expectations of a Fed rate hike

• ▼Nvidia pressure down — uncertainty over the company's leadership weighs on investor confidence
• ▲Dollar pressure up — rising expectations of a Fed rate hike at the December meeting

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