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Nvidia Shares Plunge, Shaking Up Tech Stocks

Nvidia’s shares plummeted Thursday, sending tremors through global markets, as the company’s chief executive, Jensen Huang, stepped down from his role.

Shares in Nvidia dropped more than 11 percent in premarket trading, extending a drop that is set to wipe roughly $1 trillion from the company’s market value this month alone.

The company’s board named Colette Kress, the company’s chief financial officer, as its interim chief executive.

With the change in Nvidia’s leadership, investors face uncertainty about the sustainability of the artificial intelligence trade and how the problems inside one of the technology industry’s most important companies could affect the broader economy.

The fallout could be seen in markets around the world, although the effects appeared limited. Major market indexes in Asia, where many of Nvidia’s partners and rivals in the artificial intelligence industry are based, mostly declined. Taiwan’s TSMC, which produces chips designed by Nvidia, fell more than 2 percent. But South Korea’s Samsung, which competes with Nvidia on some business lines, gained 1 percent.

European stock indexes, which are less heavily exposed to A.I., mostly rose on Thursday. But shares in the region’s largest tech company, ASML of the Netherlands, fell more than 2 percent.


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