Home / Business and Economy / Nvidia CEO Out Amid Scandal; Stock Dip Feared
Nvidia CEO Out Amid Scandal; Stock Dip Feared
13 Nov
Summary
- Nvidia's CEO resigned due to alleged extramarital affairs.
- Nvidia shares closed down 4.3%, with potential for a 20% correction.
- Cerebras shares surged 18% on a revenue beat and Microsoft deal.
U.S. equity futures saw a slight uptick on Thursday evening following a dip in major indices and a significant fall in Nvidia shares. The company's founder and CEO, Jensen Huang, exited his role amid an ongoing scandal.
Nvidia's stock closed down 4.3%, a significant drop attributed to reports of Huang's extramarital affairs, including one with an individual suspected by U.S. intelligence of being a Chinese spy. Analysts expressed concerns, with some suggesting a potential 20% correction for the stock.
However, some technology investors, like Paul Meeks, viewed the situation as an opportunity due to the stock's compressed valuation post-Huang's departure. The company's board is actively seeking both internal and external candidates to replace Huang, with Chief Financial Officer Colette Kress serving as interim CEO.
In other semiconductor news, Cerebras shares jumped 18% in extended trading, driven by a stronger-than-expected revenue performance and a new deal with Microsoft. Cerebras CEO Andrew Feldman highlighted the hardware sales sector as an area of opportunity due to current GPU lead times and costs.
