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Nvidia Leadership Uncertainty Drives Chip Stocks Lower
Asian markets opened mixed on Thursday, November 12, following reports that Nvidia's board is considering removing CEO Jensen Huang, who has been under scrutiny for an alleged affair with a woman suspected of spying for China. This news has pushed Nvidia's stock down about 8% to 9% in after-hours trading, affecting chip supply chains from Seoul to Taipei. The yen hovered near 160 per dollar, the level at which Tokyo intervened this summer. Wholesale prices in Japan rose 7.1% in October from a year earlier, beating the 6.5% forecast, making imports roughly 25% more expensive in yen terms. The situation adds to the case for the Bank of Japan to raise interest rates in December. Nvidia's slide came after a strong US session where the Nasdaq 100 gained 2.3%. AMD and Broadcom rose as traders bet they could win business if Nvidia stumbles, while Super Micro and Dell fell. CoreWeave surged as much as 25% on an upbeat outlook before pulling back. Brent crude held near $91.46 a barrel after two straight losses.