Nvidia shares closed more than four per cent lower on Thursday, following the resignation of chief executive Jensen Huang after 33 years. The chipmaker's value was significantly impacted, with shares having plunged as much as 14 per cent earlier in the session.
The sell-off extended to broader markets, with the tech-heavy Nasdaq falling 0.39 per cent, the S&P 500 shedding 0.35 per cent, and the Dow Jones declining by 189 points. London's FTSE 100 opened 0.2 per cent lower, while Asian markets showed mixed results, with Hong Kong’s Hang Seng down 1.6 per cent and South Korea’s Kospi down one per cent.
Huang's departure follows revelations of alleged extramarital affairs, including one with a woman suspected by US intelligence officials of spying for China. Huang has acknowledged a relationship with Alice Huang, an executive at Megaspeed, an Nvidia customer.
Despite Nvidia's decline, rival chipmakers saw gains, with Advanced Micro Devices (AMD) and Broadcom both increasing by more than five per cent on Thursday. Jed Ellerbroek, portfolio manager at Argent Capital Management, described Huang’s departure as a "golden opportunity" for competitors.
Nvidia is scheduled to report its quarterly earnings on Tuesday, which will be the first major test of the chipmaker's outlook under interim chief executive Colette Kress.