Nvidia shares fell again on Friday, closing down 2 percent, and have now shed 13 percent of their value this week, as investors weighed the sudden exit of co-founder Jensen Huang and the chip sector slid with it.
The selloff spread across the industry. Shares of Advanced Micro Devices tumbled 9 percent to lead S&P 500 decliners on Friday, while Broadcom and Marvell Technology each dropped nearly 5 percent, Intel and Micron each declined 2.5 percent, and the iShares Semiconductor ETF fell nearly 4 percent. The Nasdaq Composite fell 0.9 percent and the S&P 500 lost 0.4 percent on Friday, while the Dow Jones Industrial Average edged up 0.1 percent.
Despite the two-day slide, the major indexes still posted weekly gains — the S&P 500 rose 2.5 percent, the Nasdaq 2.3 percent and the Dow 2.1 percent, their best week since early August.
Huang agrees to testify
Huang has agreed to testify before Congress ahead of Thanksgiving, House Foreign Affairs Committee Chairman Brian Mast told reporters on Thursday, as lawmakers examine the national security questions raised by his relationships.
Huang resigned on Thursday as president, chief executive and a board member, effective immediately, days after admitting he had been unfaithful to his wife and the board opened an investigation into whether he had been the target of a foreign intelligence operation. Chief Financial Officer Colette Kress is serving as interim chief executive, and director Harvey C. Jones has become the company’s first board chair. Nvidia gave no reason for the resignation in its announcement.
What it means for your money
Nvidia is one of the largest holdings in the index funds that sit inside many Americans’ 401(k)s and retirement accounts, so a 13 percent weekly drop in its shares moves retirement savings, not just traders’ screens — and the wider chip selloff hit those same funds.
Pressure on borrowing costs is not letting up either. The yield on the 10-year Treasury rose to 5.15 percent on Friday, up from 4.85 percent just over a week ago. Wholesale inflation also ran hot: October’s producer price index rose 6.5 percent from a year earlier, its fastest pace since November 2022. Investors now see a Federal Reserve rate rise at next month’s meeting as near-certain.
The next test for Nvidia comes on Tuesday, Nov. 17, when the company reports third-quarter results as scheduled — its first earnings report under interim chief Kress.
Sources: Investopedia; USA Today; Nvidia (SEC Form 8-K); Zark News.
