Nasdaq Futures Fall as Nvidia Turmoil Rattles AI Stocks
Nasdaq 100 futures led Wall Street lower on Thursday after Nvidia shares plunged on reports that the chipmaker’s board was considering removing CEO Jensen Huang. The uncertainty surrounding Nvidia’s leadership weighed heavily on artificial intelligence stocks.
Nvidia fell 7% in premarket trading following reports concerning allegations about Huang’s personal conduct. The company’s pivotal role in the AI boom has linked much of the sector’s performance to its outlook, increasing concerns about the potential consequences of a leadership change.
At 4:11 a.m. ET, Dow E-mini futures were up 20 points, or 0.04%. S&P 500 E-minis declined 29.25 points, or 0.38%, while Nasdaq 100 E-minis dropped 226.25 points, or 0.79%.
The selling spread across the semiconductor and AI infrastructure industries. Intel, Marvell Technology and Micron fell between 2.6% and 3.4% in premarket trading. CoreWeave declined 7.2%, while Nebius lost 4.7%.
The retreat threatened to reverse gains from the previous session, when strong results from CoreWeave helped AI-related stocks recover some ground. Among the large technology companies known as the Magnificent Seven, Tesla slipped 0.8%, while Alphabet advanced 0.5%.
The market swings highlighted the continuing debate over AI investments. Some investors have become more cautious amid concerns about a possible slowdown in data-center development and uncertainty following Democratic gains in the midterm elections. Others view the recent weakness in technology shares as an opportunity to buy leading AI companies at lower valuations.
Market participants also noted that spending on AI infrastructure has yet to show clear signs of slowing. However, Nvidia’s dominant position means that company-specific turmoil can quickly affect semiconductor makers, infrastructure providers and other businesses tied to the broader AI market.
Investors will be watching Nvidia closely for clarification about its leadership and assessing whether the latest decline represents a temporary disruption or a more significant threat to confidence in the AI trade.
