Nvidia shares dive, rattling tech stocks
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Nvidia's sell-off deepened early Thursday after co-founder and CEO Jensen Huang resigned.
Why it matters: As the second-largest U.S. company by market capitalization, Nvidia has outsized influence over the market-cap-weighted indexes like the S&P 500 and Nasdaq 100, which serve as cornerstones for many portfolios among professionals and individual investors alike.
The latest: Down more than 11.5% in the premarket Thursday, the shares have recovered a bit, trading down nearly 8% in early trading.
Context: A little more than one month ago, Nvidia reached an all-time high of $239.24 on Oct. 6, giving it a market value of $5.78 trillion.
- The scale of the value destruction since then is roughly $2 trillion.
What we're watching: How the rest of the AI ecosystem — from the Big Tech hyperscalers and the neoclouds, to picks-and-shovels plays like memory chip makers and data center construction firms — trades today, and what that implies about how Huang's departure could change the outlook for the boom.
