Nvidia stock falls after Huang resigns, weighing on broader market

Major stock indexes declined at the opening bell on news that Jensen Huang, one of the most important executives in the AI boom, was resigning effective immediately as CEO of Nvidia.Shares of Nvidia sank 12% at the open, as the company and its investors grappled with multiple scandals that have engulfed its founder and now-former CEO, Jensen Huang.

The stock recovered somewhat but still traded down more than 6% as of 10 a.m.ET.In early trading, the company was the biggest decliner for both the Dow Jones Industrial Average and S&P 500.

The tech-heavy Nasdaq Composite index fell 0.5%, while the S&P 500 slipped 0.3%.The Dow was essentially flat.Without a formal succession plan, the company that designs the chips powering the entire AI sector, was thrust into crisis.

It’s a pivotal moment for AI, with Anthropic gearing up for its potentially trillion-dollar-plus initial public offering next week.Nvidia named its longtime chief financial officer as its interim leader.Huang’s departure from Nvidia came after a New York Times report that said he had a relationship with an executive at Nvidia who reports to him.That came right on the heels of his admission on Sunday that he was “unfaithful” to his wife, an announcement that was released after the FT reported on Saturday that Huang had an affair with a woman whom a source told NBC News was a Chinese spy.There are few companies as important to the artificial intelligence industry as Nvidia.

“We’re probably the only AI company in the world that works with every AI company in the world,” Huang told Bloomberg in an October interview.As reports swirled about Huang this week, Nvidia’s shares have plunged, erasing about $830 billion in value.Nvidia’s total market value has fallen below $4 trillion for the first time since 2025.The news surrounding Huang, a confidant of President Donald Trump’s, also raises the prospect of tighter regulations on the chip and AI industry, which could further pressure ...