US stock futures traded mixed on Thursday, with technology stocks bearing the brunt of selling pressure as Nvidia shares slumped following reports about the future of CEO Jensen Huang. However, the weakness extended beyond the chipmaker, with a broader selloff in semiconductor and artificial intelligence (AI) stocks, profit-booking after a strong previous session and concerns over rising bond yields adding to the cautious mood.
Here are three key reasons weighing on Wall Street futures.
1. Nvidia's Leadership Uncertainty
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Nvidia shares came under significant pressure after The New York Times reported that Huang had an extramarital relationship with an executive at the company. Separately, The Wall Street Journal reported that Nvidia's board was preparing to remove him as CEO.
The reports have unsettled investors, given Huang's central role in building Nvidia into the world's leading AI chipmaker. Several Wall Street analysts told CNBC that his departure could potentially trigger a 20% decline in the stock, reflecting how closely the company's growth story is tied to his leadership.
Nvidia shares were down around 7% in premarket trading, extending a sharp decline that has already taken the stock more than 20% lower over the past month.
2. Selloff Spreads Across Chip And AI Stocks
The pressure was not confined to Nvidia. Several semiconductor and AI-linked stocks also traded lower, signalling that investors were becoming more cautious about the broader technology trade.
Intel, Marvell, Arm and Qualcomm were among the chip stocks under pressure. CoreWeave, despite reporting better-than-expected results and raising its revenue outlook, fell 7.2% in premarket trading.
However, the weakness was not universal. Advanced Micro Devices (AMD) and Broadcom moved higher, gaining around 3% and 2.5%, respectively, before the opening bell.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
