Tech stocks under pressure as Nvidia crisis deepens AFP Thu, November 12, 2026 at 6:44 AM EST 3 min read NVDA -7.75% ^IXIC +1.60% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Technology shares came under pressure Thursday as investors kept a nervous eye on AI giant Nvidia, whose influential boss Jensen Huang is facing a board revolt amid a probe into an affair with a woman accused of spying for China.
Reports of another affair, between Huang and a senior Nvidia executive, piled on the pressure and reportedly prompted an emergency board meeting late Wednesday.
Shares in Nvidia, which is due to report quarterly earnings next Tuesday, slid about six percent in pre-market trading.
"A leadership scandal at one of the world's biggest companies is enough to bring the tech stock rally to a halt, and the Nasdaq is pointing to a lower open," said Kathleen Brooks, research director at trading group XTB.
She added that the Nvidia fallout was "helping to spur a rotation into European markets that are traditionally low-tech".
London, Paris and Frankfurt all climbed in midday deals.
Frankfurt's blue-chip DAX reached a record high above 27,000 points thanks to healthy corporate earnings and recent optimism about the artificial intelligence boom.
Companies linked to the AI sector had enjoyed a healthy bounce in recent days after last week's sell-off sparked by regulatory concerns following the Democratic sweep of the US Congress.
But the Nvidia leadership crisis rattled investors on Thursday, sending Asian stock markets lower.
Huang faces the boot after he admitted to an extramarital affair, reportedly with Alice Huang, a senior executive at Singapore-based data centre company Megaspeed who US officials believe was working for Chinese intelligence.
The New York Times reported Wednesday that Huang was also involved in a second extramarital affair, with the company's vice president of health care, Kimberly Powell.
That prompted a last-minute board meeting, but no official announcements have yet been made on the outcome.
The stock has shed 24 percent of its value over the past month, wiping around $1.4 trillion off its market capitalisation.
"The integrity of the $1 trillion (revenue) forecast, in the wake of this scandal, is likely to be a key question on Nvidia's earnings call next week," Brooks said.
Huang has built Nvidia into one of the world's biggest and most important companies, designing advanced chips crucial to the AI buildout that has helped drive stock markets to record highs and boosted economies around the world.
But analysts say the crisis has exposed an alarming lack of a succession plan for Huang, the only CEO Nvidia has ever had.
"Nvidia has spent years convincing investors that it is one of the most important companies in the AI revolution," wrote Charu Chanana, chief investment strategist at Saxo Markets.
"An abrupt exit without a credible succession plan could force investors to reassess how much of Nvidia's future depends on Huang personally," she said.
Elsewhere, Burberry shares jumped nine percent after the British luxury group returned to profit in the first half of the year.
Oil prices slipped as a report showed production in the Gulf had increased despite the US-Iran war, while the dollar steadied after gains seen amid growing expectations the Federal Reserve will increase interest rates next month.
London - FTSE 100: UP 0.4 percent at 10,872.99 points
Tokyo - Nikkei 225: DOWN 0.7 percent at 60,819.36 (close)
Seoul - Kospi: DOWN 0.6 percent at 5,342.73 (close)
Hong Kong - Hang Seng Index: DOWN 1.3 percent at 24,008.55 (close)
Shanghai - Composite: DOWN 0.7 percent at 3,655.83 (close)
Brent North Sea crude: DOWN 0.8 percent at $92.01 per barrel
West Texas Intermediate: DOWN 0.9 percent at $85.79 per barrel
Euro/dollar: UP at $1.1093 from $1.1092 on Wednesday
