Nasdaq futures slide 0.8% after WSJ report Nvidia board may remove CEO Huang

The selling is concentrated in the AI supply chain rather than spread across the broader market, which explains why Nasdaq futures are falling more than twice as fast as S&P futures. The next test will come with the Asian open. Indexes in Taiwan, South Korea and Japan have heavy weightings in Nvidia suppliers and AI hardware names, making them the first cash markets to react to the news. For US indexes, a leadership change before the November 17 results would inject uncertainty about guidance and customer relationships at a time when investors are assessing whether AI spending will hold up. Gains in AMD point to a partial rotation within the chip sector rather than a wholesale exit from AI exposure. A board statement ruling out a change, or outlining an orderly succession, would be the main factor that could reverse the move.

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Earlier:

• Nvidia stock plunges after hours as New York Times reports new Jensen Huang relationship allegation
• Nvidia CEO Huang faces 2nd relationship report as NYT links him to senior executive

Also:

• Strategy (MSTR) is to be removed from MSCI Global Investable Market Indexes following MSCI's implementation of a new non-operating company rule.

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The Huang story has shifted from a personal scandal to a possible departure, and the market is pricing that risk across the entire AI supply chain, not just Nvidia.

Summary:

• Nasdaq 100 futures fell around 0.8% and S&P 500 futures around 0.3% when trading reopened at 6 p.m. New York time
• The Wall Street Journal reported that Nvidia’s board is preparing to oust CEO Jensen Huang, after a New York Times report of a relationship with a subordinate
• Nvidia fell around 4.5% after hours to about $166
• Super Micro Computer fell 3.7%, and Oracle, CoreWeave and Intel also declined
• AMD rose 3.8% as traders bet on disruption at its rival
• Nvidia reports results on November 17, with a requested House briefing for Huang the next day

US equity index futures opened lower on Wednesday evening after The Wall Street Journal reported that Nvidia’s board is preparing to oust chief executive Jensen Huang. When trading resumed at 6 p.m. New York time, Nasdaq 100 futures were down around 0.8% and S&P 500 futures around 0.3%. The larger decline in the tech-heavy contract highlights where the risk is concentrated.

Nvidia shares fell around 4.5% in after-hours trading to about $166, from a close near $174. The Journal’s report followed a New York Times account earlier in the day that Huang had an extramarital relationship with Kimberly Powell, Nvidia’s vice president of health care, who reports to him. Nvidia’s board was already investigating Huang’s relationship with a Chinese businesswoman whom US officials identified as an intelligence asset. Reports describe the board as meeting to decide his future, and no decision has been announced. Nvidia had previously said Huang would remain CEO while the investigation proceeds.

The selling quickly spread to companies whose businesses are closely tied to Nvidia. Super Micro Computer fell 3.7% after hours. It buys Nvidia chips and builds them into server racks, and its shift toward selling complete racks rather than individual components has made it more dependent on Nvidia. As recently as late October, it added new Nvidia-based racks to its line-up. Oracle and CoreWeave, both large buyers of Nvidia hardware for their AI data centers, also fell, as did Intel. Rival AMD went the other way, rising 3.8% as traders bet it could benefit from any disruption at its larger competitor.

The size of the reaction shows how closely Nvidia’s story is tied to Huang himself. He co-founded the company in 1993 and has been the public face of its rise to dominance in AI chips. He is also central to its relationships with customers, suppliers and governments. Nvidia is one of the heaviest weights in the S&P 500 and Nasdaq 100, so a sharp move in its shares feeds directly into the indexes.

The timing adds to the pressure. Nvidia reports third-quarter results on November 17, and three House committee chairs have requested a closed-door briefing with Huang the following day. Any announcement on leadership before then would set the tone for the results.