Nvidia, AMD, CoreWeave, Nebius, Tesla, Strategy, and More Stocks That Explain Today's Market

Dow Jones11-12 23:12

Stocks fell Thursday after Nvidia CEO Jensen Huang's resignation following two extramarital affairs disrupted the artificial-intelligence trade.

Nvidia dropped 7.1% after the company said CEO Huang officially resigned. The stock was one of the worst performers in the S&P 500. Chief Financial Officer Colette Kress was appointed as interim CEO, effective immediately, while Harvey Jones was named as the company's first-ever board chairman.

Tesla and SpaceX CEO Elon Musk responded to speculation about Huang's future before the Nvidia chief's resignation, saying it "would be an honor" to hire Huang. Tesla and SpaceX rose 0.8% and 3.3%, respectively.

Nvidia-linked stocks were hit as investors wondered what Huang's exit would mean for the AI boom. Cloud-computing provider CoreWeave declined 8.1%. Server makers Dell and Super Micro fell 3.2% and 7.7%, respectively.

Companies with investments from Nvidia also were pressured. Intel fell 2.9%, Marvell Technology dropped 3.1%, Coherent declined 2.3%, and Lumentum Holdings was down 3.9%.

Memory-chip manufacturer Micron, memory-card supplier Sandisk, and hard-drive makers Seagate and Western Digital were among the other AI stocks falling.

Some of Nvidia's rivals, however, were benefiting from the chaos. Advanced Micro Devices rose 2.4%, while Broadcom added 4.7% and was the best performer in the S&P 500.

Nebius Group plunged 17% after the cloud provider forecast some delays in future revenue. Its third-quarter earnings, however, exceeded expectations.

Aevex gained 15%. The drone maker boosted its full-year outlook and reported its non-Ukraine revenue outpaced its Ukraine-related revenue for the first time.

Fermi jumped 12% after the data-center developer announced a new agreement with an unnamed AI customer.

Corteva sank 22% after the crop protection chemical company issued weaker-than-expected financial guidance.

Strategy was down 7.1% after index provider MSCI set out new eligibility rules that would exclude the Bitcoin investor from its global benchmarks at the end of the month.

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