Wall Street Retreats as Nvidia Turmoil Weighs on Technology Shares

US equities moved lower on Thursday as uncertainty surrounding Nvidia’s leadership unsettled artificial intelligence stocks and higher oil prices encouraged investors to reduce risk exposure.

At 9:45 a.m. ET, the Dow Jones Industrial Average gained 35.53 points, or 0.07%, to 52,522.02. The S&P 500 declined 22.06 points, or 0.29%, to 7,597.32, while the Nasdaq Composite fell 141.55 points, or 0.56%, to 25,322.31.

Nvidia shares dropped 7.6% after CEO Jensen Huang resigned following reports involving a second extramarital affair. Chief Financial Officer Colette Kress is taking over as interim CEO.

The leadership change has raised concerns about the company’s strategic direction, given Huang’s central role in Nvidia’s expansion and his influence across the AI industry.

AI Infrastructure Stocks Extend Their Decline

The weakness extended across companies connected to AI infrastructure. Nebius fell approximately 17% after forecasting that its 2026 revenue would reach the lower end of its previous guidance. CoreWeave declined around 7%, reversing part of the previous session’s gains.

The Philadelphia Semiconductor Index lost 1.3%, with Intel, Marvell Technology and Micron falling between 2.8% and 4.2%.

Other data center-related companies, including IREN, Applied Digital and Core Scientific, declined between 3% and 5%.

The selling threatened to erase Wednesday’s recovery, which had been supported by strong quarterly results from CoreWeave.

The developments highlight the sensitivity of AI-related equities to changes in expectations surrounding infrastructure demand, company leadership and financing conditions.

Nvidia Rivals and Major Technology Companies Gain

Despite the broader weakness, some large technology companies and Nvidia competitors traded higher.

Amazon advanced 2.3%, while Alphabet, Microsoft and Apple recorded modest gains. Advanced Micro Devices rose 4.3%, and Broadcom climbed 5.5%, as investors considered whether Nvidia’s leadership disruption could create opportunities for competing chipmakers.

The divergence suggests that investors are reassessing individual companies rather than withdrawing uniformly from the technology sector.

What Investors Should Watch Next

Investors will continue monitoring developments surrounding Nvidia’s leadership transition and the potential consequences for companies financially and commercially connected to its AI ecosystem.

The latest decline also comes amid broader uncertainty over AI infrastructure spending and the regulatory environment for data center development.

Market attention is additionally turning toward upcoming US producer price index data due Friday. Expectations for a December Federal Reserve rate increase remain firm, adding another factor to the outlook for equities and bond markets.