Business · Markets · 59 mins ago

Asian stocks edge up as Nvidia leadership crisis weighs on US futures

Asian stocks edge up as Nvidia leadership crisis weighs on US futures

Asian shares rose 0.3%, led by technology stocks, while US stock futures fell.

The moves came as investors weighed a leadership crisis at Nvidia, the chipmaker central to this year’s AI boom.

Nvidia shares fell as much as 10% in late US trading, and the company is working with an outside firm to identify possible successors to CEO Jensen Huang.

Reports have alleged Huang had multiple relationships outside his marriage, including one with a woman suspected of spying for China; these are reported allegations, not established facts.

Because Nvidia plays a major role in the AI boom, uncertainty at the company could weaken investor confidence in the wider sector.

Investors are also watching a possible Anthropic share offering, while expectations of higher US interest rates are adding to market uncertainty.

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Gary TanPortfolio manager at Allspring Global
Recent developments at Nvidia may affect investor sentiment toward the broader AI sector, but we see selective opportunities emerging among semiconductor companies able to provide reliable second sources for key chips used in AI.
via Al Eqtisadiah