Nasdaq 100 futures fall about 1% as Nvidia slides on reports about Huang’s future
Key Facts
Nasdaq 100 futures fell about 1% in Asian trading on Thursday, November 12, while S&P 500 futures slipped 0.5%, as pressure on Nvidia shares spread across technology markets. The move came after the stock fell 8.6% in extended trading, according to the Associated Press, following reports of a board meeting that addressed CEO Jensen Huang’s future. The stock had risen 2.9% during Wednesday’s regular session, a sharp reversal between regular trading and the hours that followed. Reuters said investors fear Huang’s departure could reduce Nvidia’s willingness to fund the artificial intelligence boom. The futures move highlights the technology sector’s sensitivity to any development affecting the company’s leadership and its role in financing the AI ecosystem.
Reuters said Nvidia’s board met on Wednesday evening to consider Huang’s future, and that it was unclear who might succeed him. The agency cited market sources as saying a leadership change could raise concerns about the company’s funding for data centers and customers with whom it shares investment. Reuters said: "It was not yet clear who might replace Huang as CEO." It noted that the initial reaction included gains in shares of competitors such as AMD and Broadcom, though the available figures did not establish the size of their gains in extended trading. Post-market trading thus centered on investors’ assessment of the news’s implications for Nvidia and its competitors.
The futures decline followed a rising session on Wall Street on Wednesday, when the S&P 500 gained 1.3% and the Nasdaq Composite rose 1.6%, while the Dow Jones added 254 points, or 0.5%, according to the Associated Press. The S&P 500 also came within 2.6% of its record high set the previous month after those gains, the agency said. Nvidia shares rose during the regular session before reversing to a loss in extended trading, and closed at $173.73 on November 11, according to EL7 data. The Associated Press linked the market gains to results from CoreWeave, whose shares jumped 24.7% after it reported a summer loss smaller than analysts had expected. At the same time, the agency described a market where gains coexist with concerns about a slowdown in the AI industry and the difficulty of justifying its large investments with profits.
Pressure spread to Asian markets on Thursday, with Taiwan’s Taiex falling 2.6%, South Korea’s Kospi down 0.9% and Japan’s Nikkei 225 off 0.9%, according to Reuters. These moves put markets that include companies linked to the semiconductor industry within the regional reaction to Nvidia’s decline and reports about its board. More broadly, Reuters said investors fear Nvidia may be less willing to fund the AI boom if Huang leaves his post. The Associated Press said concerns include the possibility of a sector slowdown and questions about whether its profits can justify heavy spending on technology. U.S. Treasury bonds did not trade on Wednesday because of the Veterans Day holiday, the agency said.
Separately from reports about the board meeting, a company statement on November 10 said independent directors had retained Joon H. Kim and Wachtell, Lipton, Rosen & Katz to conduct a comprehensive, independent investigation. The statement defines the scope of the investigation as announced by the company, while Wednesday’s reports addressed Huang’s future and succession options. Nvidia is scheduled to report results for the third quarter of its fiscal 2027 on November 17 at about 1:20 p.m. Pacific time, then hold a call to discuss the results at 2 p.m. Pacific time. Investor relations said the written CFO commentary would be published after the results announcement. The upcoming date comes as investors track the company’s results alongside the effect of leadership reports on its shares and technology markets.