Global Market Today: Asian stocks mixed as Nvidia turmoil hits AI-linked shares

Asian stocks edged higher as investors largely shrugged off a leadership crisis at Nvidia Corp. that sent shares of the chipmaker at the heart of this year’s artificial-intelligence boom tumbling in after-hours trading.

The MSCI Asia Pacific Index rose 0.2%, with gains in Japan, South Korea and Taiwan. The moves followed a strong US session in which the Nasdaq 100 jumped 2.3%, putting it on track for its best week since May.

Optimism around AI had been fueled by CoreWeave Inc., which surged 25% on an upbeat outlook, while OpenAI’s quarterly revenue reached $10 billion and Anthropic PBC’s initial public offering was said to be multiple times oversubscribed.

That enthusiasm was tested, with Nasdaq 100 futures dropping 0.8% and S&P 500 contracts losing 0.4% as Nvidia tumbled about 8% in late trading. The chipmaker’s board is meeting to discuss Chief Executive Officer Jensen Huang’s future after he admitted to an affair with a woman US officials reportedly believe is a Chinese spy, according to a person familiar with the matter.

The New York Times also reported Wednesday that Huang had a relationship with Nvidia healthcare vice president Kimberly Powell, citing multiple people who worked at the company.

The turmoil poses a particular risk for Asian markets given the region’s central role in Nvidia’s supply chain, which includes Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and SK Hynix Inc. As the dominant supplier of chips powering AI, upheaval at Nvidia risks shaking confidence in the trade that has driven much of this year’s global equity rally.

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“Nvidia’s latest developments could weigh on sentiment across the broader AI trade, but we see selective opportunities emerging among semiconductor companies that can offer credible second source alternatives for critical AI chips,” said Gary Tan, portfolio manager at Allspring Global. “Near term, however, investor reception to Anthropic’s IPO is likely to be a more important driver of AI sentiment.”

The fallout from Nvidia spread across AI-related stocks in late US trading, with server makers Super Micro Computer Inc. and Dell Technologies Inc. falling. Advanced Micro Devices Inc. and Broadcom Inc. gained on speculation they could benefit from Nvidia’s troubles.
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