Nvidia scandal hits tech stocks
Technical expertise and an ability to engage gave the chipmaker’s co-founder, who has now resigned, the edge with customers and investors Jensen Huang resigns as Nvidia CEO after alleged affairs Jensen Huang wasn’t always in his trademark leather jacket.
- Markets in South Korea and Taiwan — key suppliers of the chips powering the AI buildout — fell, and shares in Nvidia, recently the world’s most valuable company, declined 6% in premarket trading.
- The crisis at Nvidia reversed a brief AI-led stocks rally, intensifying worries of the tech bubble bursting.
- When the multibillionaire, now former Nvidia chief executive was a teenager in the US, his first job was waiting tables and washing dishes at a branch of Denny’s.
Concerns have mounted over the AI trade, notably over growing tech-sector borrowing, circular financing in the industry, and questions over whether revenues will keep pace with historic capex plans.
Within days, Huang's status as a seemingly untouchable figure leading the global tech race has crumbled.
- The potential ouster of Nvidia’s CEO risks deepening those worries: “ This is an unequivocal negative for Nvidia and the entire AI ecosystem,” one analyst told Bloomberg.
- “It teaches you humility, it teaches you hard work, it teaches you hospitality,” he said in 2023 of his time at the diner chain.
- “He is not only the face of AI but arguably the architect of the AI infrastructure.” — Prashant Rao.
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