Closing Bell: Equites Move Lower as Jensen Huang Leaves Nvidia

Stocks pulled back on Thursday as fallout from Jensen Huang’s resignation and newly emerging allegations weighed on AI stocks. The Nasdaq-100 (NDX) dropped 0.30%, and the S&P 500 (SPX) declined 0.35%. The Russell 2000 (RUT) fell 1.66%, while the Dow Jones Industrial Average ($DJI) slipped 0.36%.

Within the S&P 500, Energy and Communication Services were the only sectors in the positive on the session, while Materials, Industrials, Financials and Health Care were the biggest laggards, followed by Real Estate and Information Technology.

Nvidia: Jensen Huang Resigns; Colette Kress Named Interim CEO

Nvidia (NVDA) said Thursday morning that co-founder Jensen Huang has resigned as president, CEO and board member, effective immediately. CFO Colette Kress will serve as interim CEO and keep her roles as EVP and CFO. Longtime director Harvey C. Jones becomes the company’s first-ever chair of the board. The board is searching for a permanent CEO and will consider both internal and external candidates. It has also launched an internal investigation, hired outside counsel and opened a probe into whether foreign intelligence targeted Huang. The New York Times separately reported that Huang had a second affair, Nvidia’s vice president of healthcare, who reported to him.

AMD: William Blair Upgrades to Outperform

William Blair upgraded AMD to Outperform from Market Perform, saying the risk/reward is more attractive because the valuation has fallen while earnings estimates have risen. The firm said ongoing Xeon roadmap delays and supply shortages at Intel could benefit AMD. It also said the shift toward Arm-based server hosts is hurting AMD less than feared. William Blair added that increased scrutiny and a leadership vacuum at Nvidia, AMD’s largest competitor, could create an opening. The firm sees further upside for the shares from current levels.

SpaceX and Tesla: Merger Talks Reportedly Progressing

SpaceX (SPCX) and Tesla (TSLA) are making progress in talks on what would be a record merger, Bloomberg News reported Thursday afternoon. A deal could be announced as early as December. The companies have also discussed a scenario in which the announcement slips into early 2027.

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