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…

Original source: https://www.nbcnews.com/business