Nvidia shares dropped more than 7% in premarket trading Thursday after reports that the company’s board had discussed CEO Jensen Huang’s future unsettled investors and dragged down other AI-related stocks.
The shares were down 7.6% at $160.50 shortly before 8 a.m. ET, a decline of $13.23 from Wednesday’s close of $173.73.
The losses spread across parts of the AI sector and weighed on U.S. stock futures. Nasdaq 100 futures fell 0.86%, while S&P 500 futures slipped 0.4%. Dow futures edged up 0.03%.
Intel, Marvell Technology and Micron Technology were down between 2.7% and 3.5% in premarket trading. CoreWeave, which provides AI infrastructure, fell about 7%. Nvidia competitors Advanced Micro Devices and Broadcom moved higher, gaining 2.3% and 1.4%, respectively.
The market reaction followed a report that Nvidia’s board met Wednesday to discuss whether Huang should be removed. The report linked the discussions to scrutiny of two alleged affairs involving the longtime CEO, one of which reportedly involved a woman suspected of having ties to Chinese intelligence.
Nvidia has not announced plans to replace Huang. On Sunday, the company said it had begun an independent investigation into reports that a foreign intelligence operation had targeted him. A committee of independent directors is overseeing the review with help from outside counsel.
The company said it had no reason to believe national security or corporate secrets had been compromised, and voiced confidence in Huang and his leadership team.
Any change at the top would raise questions about continuity at Nvidia, whose processors have become central to the build-out of AI infrastructure. Huang co-founded the company in 1993 and has led it throughout its rise as a major supplier of AI chips.
The uncertainty comes as investors prepare for Nvidia’s next quarterly results and look for signs of continued demand for its chips and data center products. The company is scheduled to report fiscal third-quarter results on Nov. 17.
