Investors worry the AI trade needs Nvidia's Huang and its largesse
Executive Brief • Key Highlights
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- ✓Nvidia investors worry that CEO Jensen Huang’s potential exit could stall the AI boom.
- ✓The board met Wednesday to discuss reports of affairs involving Huang.
- ✓“I think the fear is that the music might stop,” said Jun Bei Liu.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Business Line
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Investors fear an ouster of CEO Jensen Huang might dampen Nvidia’s willingness to bankroll the AI boom, in yet another pressure point on the global markets’ most crowded trade.
The board of the world’s dominant chipmaker, at the cutting edge of computing, was meeting late Wednesday to decide Huang’s fate as it grapples with reports of two extramarital affairs involving its longtime leader.
Traders’ first reaction was to punish Nvidia shares and those of its customers, including data-centre firms CoreWeave and Naver, while pushing shares of chipmaking rivals Broadcom and AMD higher.
Shares in China’s leading makers of graphics processing units (GPUs) surged on Thursday, as mounting turmoil at Nvidia boosted expectations that local chip suppliers could win greater market share. Moore Threads, MetaX and Cambricon all jumped nearly 10%.
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