Nvidia shares plummeted nearly 6% in pre-market trading in the U.S., igniting concerns of a potential $200 billion market value loss following speculation over CEO Jensen Huang’s future. The board is reportedly deliberating his potential removal after revelations about an alleged extramarital affair captured media attention.
Nasdaq 100 Futures Lead Decline as Nvidia Drops
According to BIT Stock Platform data, as of 4:35 AM New York time, Nasdaq 100 futures fell by 0.6%, with S&P 500 futures declining by 0.3%. Nvidia’s drop accounted for more than half of the Nasdaq 100 futures’ losses, underlining the semiconductor company’s influence on the index.
Meanwhile, shares of cloud infrastructure company CoreWeave, which had experienced a sharp climb on Wednesday, receded about 5%. In contrast, Nvidia competitors Broadcom and AMD saw their values climb. Adam Crisafulli from Vital Knowledge emphasized in his report,
“Huang’s departure would undoubtedly deal a significant blow to the company.”
Banks Slash Price Targets, Record Contract Volumes
In response, Royal Bank of Canada has slashed Nvidia’s target price from $330 to $230. Similarly, Citigroup downgraded its target from an earlier revision on November 10 from $315 to $285, now reaching a low of $225. These adjustments reflect growing caution among financial institutions amid the leadership uncertainty.
On-chain data shows Nvidia contract volumes on Trade.xyz soared to a record $970.54 million on November 11.
Market Betting on Status Quo in CEO Predictions
On prediction platform Polymarket, odds for “No Change” in Nvidia’s CEO role surged from 19% to 29%, outpacing other options. Ian Buck, Vice President of Accelerated Computing, held a 25% chance, while CFO Colette Kress had 23.3%.
As Broadcom and AMD rise amidst Nvidia’s significant contribution to the Nasdaq 100 futures’ downturn, the trading pressure remains heavily centered on Nvidia. The board’s decision on Huang’s predicament thus carries considerable weight for the broader technology index.
