Global technology and artificial intelligence stocks fell after Nvidia CEO Jensen Huang resigned. The board had announced an investigation into Huang's relationship with a businesswoman, disrupting leadership at the chipmaker and adding new risks for the wider AI sector.
Nvidia announced that Chief Financial Officer Colette Kress will serve as interim CEO until the board names a permanent successor to Huang.
Reuters reported that Nvidia shares fell 8.2% to a 16-month low in early trading. The decline could push its closing market value below $4 trillion for the first time since July 2025.
Nvidia plays a central role in the AI sector through its chips. It also funds several projects that depend on its technologies. The crisis has raised questions about the company's ties to the rest of the sector. Investors are asking whether that dependence strengthens the market or leaves it more exposed in a crisis.
Hundreds of billions in losses
The Nvidia board opened an investigation into Huang's relationship with a businesswoman named Alice Huang. Allegations surfaced linking her to Chinese espionage. Since the announcement, the company has lost more than $550 billion in market value.
CoreWeave, an AI cloud computing provider backed by Nvidia, was hit hard. Its stock fell 9.1% after rising more than 27% in the previous session.
Nebius stock dropped 16.2% after the company projected its 2026 revenue would hit the lower end of its previous forecast. Shares of cloud infrastructure and data center operators IREN and Applied Digital also declined.
Tech sector sell-off
Chipmakers, which have benefited most from the growth in AI activity, led the sell-off. The Philadelphia Semiconductor Index fell 1.3%. Marvell Technology stock dropped 3.8%. Huang previously called Marvell "the next company that could reach a trillion-dollar market cap." Oracle stock also fell 2.6%.
Losses spread to data storage companies. SanDisk stock fell 6%, and Western Digital dropped 3.7%. Shares of optical product specialists Lumentum and Coherent fell between 3% and 5.1%. AI server maker Dell posted similar declines.
The crisis comes as investors were already worried about AI stocks. The Nasdaq index, which includes many tech companies, entered a technical correction in early November.
Experts expect authorities to impose stricter rules on data center expansion. That could slow investment in AI infrastructure.
Competitors gain ground
Meanwhile, some Nvidia competitors posted notable gains. AMD stock rose 3.7%, and Broadcom rose 5.6%. Investors expect the Nvidia crisis to open the door for rivals to take a share of the AI chip market.
Major tech stocks also recorded gains ranging from 0.8% to 2.7%. They included Google parent Alphabet, Amazon, and Microsoft.
Despite these pressures, London Stock Exchange Group (LSEG) data shows Nvidia stock is currently trading at about 12 times expected earnings over the next 12 months. This marks its lowest level since November 2012.
