Micron Falls 2.7% as NVIDIA Leadership Concerns Mount, Weighing on AI Stocks
Key Facts
Shares of companies linked to artificial intelligence fell in early U.S. trading on Thursday, November 12, as concerns about NVIDIA’s leadership mounted, according to the Associated Press. Micron fell 2.7%, while U.S.-listed SK Hynix declined 3.2%, according to data reported by Investing.com, citing Reuters. Chip stocks came under pressure after reports said NVIDIA’s board met late Wednesday to discuss CEO Jensen Huang’s position. The Associated Press said global markets moved unevenly on Thursday, while leadership concerns weighed on AI-linked shares. The development mattered to the sector because of NVIDIA’s central role in the AI boom and investors’ concerns about the effects of any change in its leadership.
NVIDIA shares reversed course between the regular session and after-hours trading: the stock rose 2.9% during Wednesday’s session, November 11, before falling 8.6% in extended trading after reports of the board meeting. The Associated Press reported that the board met late Wednesday to discuss the situation surrounding Huang. The agency did not say the board had decided to remove him, describing the reported meeting as a discussion of his position. At 5:32 a.m. Eastern time on Thursday, Nasdaq 100 futures were down 0.64%, while S&P 500 futures fell 0.31%. The moves came amid broader pressure on technology stocks linked to AI, alongside declines in chipmakers.
Reuters said investors fear Huang’s departure could reduce NVIDIA’s willingness to finance the AI boom, given the company’s role in funding data-center customers and projects. That concern puts leadership at the center of investors’ assessment of whether spending on AI-related infrastructure will continue. By contrast, semiconductor stocks had posted strong gains in the previous session, with the Philadelphia Semiconductor Index rising 5.7% on Wednesday. Investing.com’s coverage said strong CoreWeave results helped ease concerns about financing data-center investments. Thursday’s decline therefore followed a sector rally the day before, as the market’s focus shifted to NVIDIA news and leadership concerns.
NVIDIA’s board said in a statement issued on November 8 that it had launched an independent investigation following reports that Huang, the company’s founder and CEO, had been the target of a foreign intelligence effort. The board said: "NVIDIA’s board of directors is conducting an independent investigation in light of recent reports that founder and CEO Jensen Huang was the target of a foreign intelligence effort." In the same statement, the board affirmed its confidence in Huang and his leadership team, saying: "The board has confidence in Jensen and his leadership team, and will provide further updates as appropriate." The Associated Press also reported that Megaspeed had pledged to cooperate with the U.S. investigation. NVIDIA said it saw no reason to believe national security or company secrets had been compromised, and that its investigation would examine all available information.
Among companies tied to data-center spending, CoreWeave reported third-quarter results on November 10 and raised its full-year 2026 revenue forecast to a range of $13.0 billion to $13.3 billion. The company said it expected capital expenditure of between $37 billion and $39 billion during the year as it accelerated infrastructure deployments for customers. The results and outlook provided context for the rally in semiconductor stocks on Wednesday, when the company’s results helped ease concerns about financing data-center investments. In the previous session, Micron closed at $811.3, while NVIDIA closed at $173.73, according to EL7 data for November 11. Micron’s early Thursday move was reported as a 2.7% decline by Investing.com, citing Reuters.
Reuters said NVIDIA’s results, expected on the Tuesday following its November 12 report, would be the next major test for investors. It said the focus when results are announced will be on leadership and strategy, and on whether sales expectations established under Huang will hold if a successor is in place. The date follows the stock’s swing from gains in Wednesday’s session to a decline in extended trading, followed by losses in AI and chip stocks on Thursday. According to Reuters, NVIDIA’s role in financing data-center customers and projects remains part of investors’ concerns about the impact of any leadership change. The company’s board said it would provide further updates as appropriate, without specifying a date in its statement.