Asian stock markets traded mostly lower on Thursday, 12 November, as renewed uncertainty surrounding Nvidia Chief Executive Jensen Huang weighed on technology shares, following reports that the semiconductor giant’s board was considering removing its long-serving leader.
Nvidia shares fell 8.6% in after-hours trading on Wednesday, reversing an earlier 2.9% gain during the regular session, after reports emerged that directors were preparing to discuss Huang’s future following allegations concerning his personal relationships and potential national security implications.
According to the Wall Street Journal, Nvidia’s board was preparing to consider Huang’s removal, following reports of two extramarital relationships, including one involving a Chinese businesswoman suspected by US intelligence officials of having links to Beijing.
The New York Times separately reported allegations concerning a relationship between Huang and a senior Nvidia employee.
Huang previously acknowledged an extramarital relationship, while the company announced an independent investigation into whether he had been targeted by a foreign intelligence operation.
The controversy has raised questions about corporate governance, potential conflicts of interest and Nvidia’s exposure to sensitive international technology markets.
However, the espionage allegations remain unproven, and Nvidia has said it has no reason to believe company secrets or US national security information were compromised.
No formal decision to remove Huang had been confirmed at the time of the reports.
The uncertainty unsettled Asian markets, particularly those with significant exposure to semiconductor manufacturing and artificial intelligence supply chains.
Japan’s Nikkei 225 slipped 0.1% to 61,224.87, while South Korea’s Kospi surrendered its early gains to trade almost unchanged at 5,375.63.
Taiwan’s Taiex declined 1.2%, reflecting pressure on technology-related stocks, while Australia’s S&P/ASX 200 fell 0.4% to 9,117.00.
In China, Hong Kong’s Hang Seng dropped 0.9% to 24,088.41, although the Shanghai Composite managed a modest 0.2% advance to 3,688.05.
The cautious performance followed a strong Wall Street session on Wednesday, when US technology stocks recovered further from last week’s sharp sell-off.
The S&P 500 climbed 1.3%, moving within approximately 2.6% of its record high, while the Nasdaq Composite advanced 1.6%.
The Dow Jones Industrial Average gained 254 points, or 0.5%, supported by improving investor sentiment across several major sectors.
The rally had been driven partly by renewed confidence in artificial intelligence infrastructure companies following stronger corporate results and continued interest in upcoming technology listings.
However, Nvidia’s after-hours decline introduced fresh uncertainty into the recovery, given the company’s central position in the global AI semiconductor market.
Nvidia’s advanced processors underpin substantial investment in data centres and artificial intelligence computing, making its performance an important influence on technology shares worldwide.
Huang has led Nvidia since co-founding the company in 1993, and any change in leadership could raise significant questions about succession planning and the future direction of one of the world’s largest technology businesses.
For investors, the immediate concern is whether the reported governance issues will result in a leadership change or broader regulatory consequences.
The latest developments come during a period of heightened sensitivity towards AI-related valuations, with investors already assessing the sustainability of spending on semiconductors, data centres and computing infrastructure.
Although Wednesday’s Wall Street rally demonstrated continued demand for technology shares, the renewed selling pressure on Nvidia highlights the vulnerability of the sector to company-specific developments.
The next significant development will be any formal announcement from Nvidia’s board concerning Huang’s position and the progress of its independent investigation.
Until then, the possibility of a leadership change remains a reported development rather than a confirmed outcome, with Asian markets reflecting the resulting uncertainty across the global semiconductor industry.
