Neocloud stocks crash following Nvidia controversy Arjun Parashar Thu, November 12, 2026 at 1:51 PM EST 3 min read NVDA -5.19% 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.
The trade that took cryptocurrency miners to the artificial intelligence (AI) sector came under fresh pressure Thursday as Nvidia cofounder Jensen Huang resigned as the company CEO. The development impacted the stock market, particularly pushing the shares of AI infrastructure firms down the price ladder.
Nvidia announced on Nov. 12 that Huang had stepped down as president, CEO and director, effective immediately. Chief Financial Officer Colette Kress has been appointed as the chip giant's interim CEO, the announcement said.
Huang's departure from Nvidia comes after he admitted to have been "unfaithful" with his wife in an internal mail sent to the Nvidia team on November 8.
U.S. intelligence officials reportedly suspect that his extra-marital interest was recruited by Beijing to gather information on Nvidia and gain access to high-end semiconductor supply lines. The situation has stemmed concerns around U.S. national security, according to The Associated Press.
Nvidia has not officially identified those allegations as the reason for his resignation.
The company said its operations and product roadmap were expected to continue uninterrupted, but the departure put the AI industry's dependence on Nvidia in focus.
Related: Trader loses millions after Nvidia CEO Jensen Huang steps down
Several companies caught in Thursday selloff have roots in the cryptocurrency mining business.
CoreWeave (Nasdaq: CRWV) began by mining Ethereum using discounted Nvidia chips before becoming a specialized AI cloud provider. Its early relationship with Nvidia helped shape that transition.
IREN Limited (Nasdaq: IREN), formerly Iris Energy, expanded from Bitcoin mining into AI infrastructure and announced plans in March 2026 to grow its fleet to 150,000 Nvidia GPUs.
TeraWulf (Nasdaq: WULF) has also expanded from Bitcoin mining into high-performance computing (HPC) infrastructure, while Applied Digital, formerly Applied Blockchain, began Ethereum and altcoin mining operations in 2021 before moving into AI data center hosting.
Nebius (Nasdaq: NBIS) has a different history. Formerly Yandex N.V., it emerged as an AI infrastructure company after divesting its Russian businesses.
The companies have used their experience developing large facilities and securing electricity to enter the AI market, although Bitcoin mining hardware cannot simply be repurposed for AI computing.
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Nebius was among the hardest-hit stocks, falling 18% to $126.47. The company also issued disappointing revenue guidance, according to CNBC, adding a company-specific pressure to the broader selloff.
CoreWeave dropped nearly 7% to $56.74, while IREN fell more than 8.5% to $19.04. TeraWulf lost more than 2% to $13.
The declines accompanied a sharp fall in Nvidia shares, which dropped more than 5% on the day to trade at $164.33, according to Yahoo Finance.
Reuters reported that Huang's departure posed fresh risks to an AI sector in which Nvidia helps finance infrastructure built around its chips.
These businesses, however, have varied ties with Nvidia, and Thursday's price movements do not establish that their contracts or expansion plans have been affected.
Nvidia's Nov. 17 earnings: whether Kress offers more detail on strategy and customer commitments.
GPU deployment and funding: whether former miners remain on track with their AI expansion plans.
Contracts and guidance: company updates that show whether the selloff reflects business changes or investor sentiment.
Cryptocurrency prices were also lower in the supplied market snapshot.
Bitcoin (BTC) traded at approximately $71,797, down 2.34%, while Ether (ETH) fell 2.03% to $2,011, according to the supplied market heatmap. The snapshot did not specify the percentage-change window.
Related: Trader loses millions after Nvidia CEO Jensen Huang steps down
This story was originally published by TheStreet on Nov 12, 2026, where it first appeared in the Business News section. Add TheStreet as a Preferred Source by clicking here.
