From The San Francisco Standard · · 1m 30s
Nvidia Shares Drop as Huang Ouster Fears Rise
Nvidia shares plunge 8% after reports of CEO Jensen Huang’s potential ouster.
In brief
Nvidia shares plunge 8% after reports of CEO Jensen Huang’s potential ouster. Nvidia shares fell 8% in after-hours trading as markets reacted to potential CEO ouster of Jensen Huang. Originally reported by The San Francisco Standard.
Nvidia Shares Plunge
Nvidia shares fell about 8% in after-hours trading Wednesday after The Wall Street Journal reported the company’s board is preparing to oust CEO Jensen Huang.
Potential Ouster Reports
The prospect of Huang’s ouster emerged hours after The New York Times reported the billionaire executive had been having a second extramarital affair with a subordinate.
Board Seeking Replacement
Bloomberg reported the board is working with an outside firm to identify a replacement chief executive.
Market Reaction
Because the reports emerged after the closing bell, the stock price drop reflects after-hours trading when volume is typically thin and prices can swing more sharply.
Previous Affair Disclosure
Nvidia’s stock fell briefly earlier this week after Huang admitted to employees on Sunday that he had had an affair with a woman suspected by U.S. intelligence officials of spying for China.
Analyst Reactions
Shay Boloor, chief market strategist at The Futurum Group, said he doesn’t see the next 12 to 18 months of revenue disappearing if Jensen were to leave.
AI Industry Impact
Huang’s potential ouster could complicate Anthropic’s highly anticipated initial public offering next week which requires Nvidia to invest $10 billion through a private placement.
Market Consequences
Some Nvidia suppliers like Ibiden fell as much as 7.2% while Advantest dropped 4% in early trading.
Here's the gist
Nvidia shares fell 8% in after-hours trading as markets reacted to potential CEO ouster of Jensen Huang.
