Nvidia shares fell 7% amid rumors of Huang's resignation. Which other stocks were affected?
Nvidia's falling stock price is dragging down the shares of several other companies closely tied to the chipmaker / Photo: Samuel Boivin / Shutterstock.com
Nvidia shares fell nearly 6% in U.S. premarket trading amid uncertainty surrounding CEO Jensen Huang. According to the WSJ and other major media outlets, the company’s board of directors is preparing to remove him from his post following reports of extramarital affairs, including one with an alleged Chinese spy. If this trading trend continues into the regular session, the stock will hit its lowest level in more than a year, Bloomberg notes.
Which stocks fell due to problems at Nvidia?
Nvidia's falling stock price is dragging down the shares of several other companies in the chipmaker's "orbit," according to MarketWatch.
Shares of CoreWeave, a cloud-based AI infrastructure provider—which surged 25% the previous day following a strong quarterly report—are down about 5% in premarket trading. Nvidia is a major investor in CoreWeave, which in turn purchases chips from Nvidia.
Shares of Super Micro Computer—a buyer of Nvidia chips and a company whose profitability depends on the successful deployment of AI infrastructure—fell 5%. Pressure on the stock is also being exacerbated by allegations that the company previously supplied banned chips to China.
Dell Technologies shares are down more than 2% amid concerns that demand for its AI computing equipment may decline.
Shares of SoftBank, a Japanese investment group with significant investments in the AI sector, fell 3% during trading in Tokyo.
Which stocks are rising in price?
Shares of Broadcom and AMD, which compete with Nvidia in the production of artificial intelligence chips, rose 3% in premarket trading.
Shares of Alphabet, the manufacturer of TPU processors used in artificial intelligence computing, are up 0.1%.
Shares of Nebius—another cloud provider backed by Nvidia—are also up. They’re gaining more than 1% in premarket trading. Nebius CEO Arkady Volozh will release the company’s quarterly report after November 12.
This article was AI-translated and verified by a human editor
