Nvidia turmoil spills over into wider tech sector losses

Summarised from 3 outlets · 5 reports · Updated 15 Nov, 05:13 · Archive

Nvidia shares fell sharply after founder Jensen Huang's resignation, dragging down other technology stocks.

Nvidia shares extended losses on Friday, falling more than two per cent as Wall Street opened, with the chip giant's market value slipping below $4 trillion. This marked a continuation of the previous day's sell-off, when the stock had plunged as much as 14.3 per cent following news of Jensen Huang's resignation.

The turmoil at Nvidia rippled across the technology sector more widely. London-listed technology trusts suffered another bruising sell-off on Friday as a result of the chip giant's woes.

However, some market experts suggest the crisis could reshape the artificial intelligence trade in unexpected ways. Dave Mazza, CEO of Roundhill Investments, told CNBC that other players in the AI sector could benefit if investors lose confidence in Nvidia. 'If we get into an environment where people can't trust Nvidia, they're going to look for other sources for these chips because they need them,' he said. Mazza suggested that hyperscalers with available computing power could see their own valuations rise as demand for alternative suppliers increases.

Mazza's Magnificent Seven ETF ended the week in the green with gains of less than one per cent, while the Roundhill Neocloud ETF, which focuses on smaller cloud computing companies, was up over one per cent. Mixed results from the ETF's top holdings reflected broader uncertainty: CoreWeave had its best day since April 2025 following strong quarterly results on Wednesday, while Nebius shares sank after its Thursday earnings report.

Despite Nvidia's troubles, broader market indices performed well. The S&P 500 secured a weekly gain of 2.5 per cent, while the tech-heavy Nasdaq added 2.3 per cent.

How it is being reported

• Data centre construction stocks lose $4.2tn as boom in AI trade unravelsShares in AI ‘picks and shovels’ companies hit hard by tech sell-offFinancial Times · 15 Nov, 05:00
• Nvidia's leadership crisis rattles the AI trade. Here's how we're adjusting our portfolioDespite the turbulence, the S&P 500 secured a weekly gain of 2.5%, while the tech-heavy Nasdaq added 2.3%.CNBC · 14 Nov, 18:48
• How Nvidia turmoil and a Democratic Congress could reshape the AI trade, according to ETF expertsETF experts say Nvidia’s leadership turmoil and Democratic control of Congress could shift AI demand to the benefit of other Big Tech stocks, rival chipmakers.CNBC · 14 Nov, 15:50
• Nvidia shares slip again as Wall Street weighs chip giant’s futureNvidia shares fell more than two per cent as Wall Street opened on Friday, extending a bruising week for the chip giant after Jensen Huang’s resignation and pushing its market value below $4 trillion. The AI heavyweight slipped 2.5 per cent to around $162 in early trading, having initially risen in pre-market dealings, as investors [...]City AM · 13 Nov, 15:55
• London-listed tech trusts suffer further losses after Nvidia falloutLondon-listed technology trusts have suffered another bruising sell-off on Friday after Nvidia’s shares were thrown into turmoil by Jensen Huang’s dramatic departure. Nvidia shares opened 1.7 per cent lower at Friday’s opening bell, after plunging as much as 14.3 per cent on Thursday following news of three separate affairs that resulted in the resignation of [...]City AM · 13 Nov, 14:53

In this story: Nvidia · Jensen Huang · Wall Street · Roundhill Investments · CoreWeave · Nebius

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