New Delhi: Nvidia shares plunged more than 13 per cent in pre-market trading on Thursday following the sudden resignation of the company's Chief Executive Officer (CEO) Jensen Huang.
Nvidia shares fell 13.09 per cent to open at $150.99, reflecting sharp selling pressure following the company's announcement of a major leadership transition.
However, after US markets opened, NVIDIA shares recovered some of their earlier losses and were trading at $160.36, down 7.69 per cent, at the time of reporting.
A plunge for Nvidia's stock is also pulling the US market lower, threatening to upend the AI boom that has carried Wall Street to record after record in recent years.
The S&P 500 fell 0.7 per cent on Thursday. The weakness for AI stocks sent the Nasdaq composite down 1.5 per cent, while the Dow Jones Industrial Average added 127 points.
Other stocks in the AI industry also fell, though some of Nvidia's rival chip companies rose.
Jensen Huang tendered his resignation as CEO, President and a member of the Board of Nvidia on Thursday.
The resignation, marking an end to Huang's 33 year stint with the chip-making giant, is set to take effect immediately.
The resignation follows mounting pressure faced by Huang to resign after his affair with an alleged Chinese spy raised national security concerns in US.
(With inputs from AP via PTI & ANI)