Nvidia shares fall 4.34% as CEO Jensen Huang resigns, rattling AI stocks
Nvidia shares closed 4.34 percent lower at $166.19 on Thursday after chief executive Jensen Huang resigned, dragging Asian technology stocks and US futures lower and putting the outlook for the artificial intelligence trade under fresh scrutiny. The stock recovered some ground after hours, rising 0.99 percent to $167.84.
The fallout spread across Asia's AI supply chain. South Korea's Naver fell more than 5 percent, Chinese model developers Z.AI and MiniMax recorded sharp declines, and data-centre suppliers Zhongji Innolight and Eoptolink Technology also slumped. South Korea's KOSPI closed 0.98 percent lower, while MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.42 percent. Japan's Nikkei added 0.53 percent. Nasdaq 100 futures fell 0.11 percent and S&P 500 futures 0.1 percent.
Huang's departure raises questions over US chip export policy, given his efforts to keep Nvidia's access to the Chinese market and his ties to President Donald Trump. Senate Banking Committee chairman Tim Scott sent letters to Commerce Secretary Howard Lutnick and Huang on Thursday requesting their testimony before the committee over recent developments at Nvidia. The turmoil could open ground for rivals including AMD, Arista Networks and Broadcom.
Bond markets added pressure. The two-year Treasury yield reached 4.8920 percent, a one-month high, and the 10-year rose to 5.1433 percent. Markets now assign a 13 percent probability to a 50-basis-point Fed rate increase next month, against none a week earlier, according to the CME FedWatch tool. The dollar was set for a weekly gain of about 0.9 percent, its strongest in more than a month, keeping the yen near 160 per dollar.
Copper headed for a weekly decline, with Australia-listed Capstone Copper down more than 5 percent. Brent crude eased 23 cents, or 0.24 percent, to $95.59 a barrel and West Texas Intermediate fell 48 cents, or 0.54 percent, to $88.26, both set for a second weekly loss. Spot gold rose 0.5 percent to $3,896.33 an ounce.
What it means for Pakistan: A sustained retreat in AI-linked technology stocks and a firmer dollar feed directly into the rupee's import bill and into Pakistani investors' exposure to US tech through mutual funds and robo-advisory portfolios. Any tightening of US chip export rules that follows Huang's exit would also shape the cost and availability of AI hardware for Pakistani fintechs and data-centre projects. The State Bank of Pakistan and the Securities and Exchange Commission of Pakistan have no role in the events described, and no Pakistani official reaction was reported.
