Chipmakers Intel, Marvell Technology and Micron fell between 1.9 percent and 2.8 percent in premarket trading on Thursday, as the Nvidia turmoil spread across the semiconductor sector. Futures tracking the Nasdaq 100 led Wall Street lower after Nvidia shares plunged on reports that its board was weighing the ouster of chief executive Jensen Huang.
Why it matters
The AI heavyweight dropped 6 percent in premarket trading following the reports, as investors fretted over the potential fallout from any leadership change at the company central to the AI boom. At 5:32 a.m. Eastern Time, Dow e-minis were up 61 points, or 0.12 percent, while S and P 500 e-minis fell 24.25 points, or 0.31 percent, and Nasdaq 100 e-minis slipped 181 points, or 0.64 percent.
AI infrastructure firm CoreWeave dropped about 6 percent in premarket trading, giving back part of its 25 percent surge on Wednesday earnings. The swing shows how quickly the sector can turn when the company at its centre is in crisis, and how little protection a strong earnings report offers when the news is about governance.
What happens next
The selling was not limited to chips. The broader market was mixed, with the Dow holding up because it is less exposed to chipmakers. The split between the Dow and the Nasdaq captures the shape of the crisis: it is concentrated in technology, and it is spreading through the supply chain rather than across the whole economy.
Investors are also gearing up for the release of the Producer Price Index on Friday, which could help shape inflation expectations after data earlier this week showed consumer prices rose more than expected last month.
At 5:32 a.m. Eastern Time, Dow e-minis were up 61 points, or 0.12 percent, while S and P 500 e-minis fell 24.25 points, or 0.31 percent, and Nasdaq 100 e-minis slipped 181 points, or 0.64 percent. The AI heavyweight dropped 6 percent in premarket trading following the reports, as investors fretted over the potential fallout from any leadership change at the company central to the AI boom. The selling was not limited to chips, but the Dow held up because it is less exposed to chipmakers, and the split between the Dow and the Nasdaq captures the shape of the crisis.
