Asian shares were mostly lower Thursday, while U.S. stock futures were mixed, as renewed concerns surrounding Nvidia and its leadership weighed on artificial intelligence-related stocks. The developments surrounding the semiconductor giant's CEO, Jensen Huang, added to investor uncertainty about the technology sector, even as major U.S. indexes recorded strong gains in the previous session.
Nvidia shares fell 8.6% in after-hours trading following reports that the company's board was meeting late Wednesday to discuss the situation involving Huang. The controversy surrounding his reported relationship with a Chinese businesswoman has raised national security concerns in the United States.
The stock had gained 2.9% during Wednesday's regular trading session. However, Nvidia shares have faced pressure since the company announced an investigation into Huang, who has acknowledged the relationship with a businesswoman allegedly involved in providing intelligence and advanced chips to China.
Asian Markets Trade Mostly Lower
Japan's benchmark Nikkei 225 slipped 0.1% to 61,224.87. South Korea's Kospi gave up its early gains and stood nearly unchanged at 5,375.63, while Taiwan's Taiex declined 1.2%.
Australia's S&P/ASX 200 fell 0.4% to 9,117.00. In Hong Kong, the Hang Seng Index dropped 0.9% to 24,088.41, while mainland China's Shanghai Composite moved in the opposite direction, rising 0.2% to 3,688.05.
The mixed performance across the region reflected investor caution as concerns about Nvidia's leadership and the broader outlook for artificial intelligence continued to influence technology shares.
Wall Street Rebounds as Technology Stocks Advance
U.S. markets moved higher Wednesday, with the S&P 500 gaining 1.3% and recovering nearly all of the losses from the sharp sell-off the previous week. That decline had been driven by concerns about a possible slowdown in businesses connected to artificial intelligence. The benchmark index ended the session within 2.6% of the record high it reached last month.
The Nasdaq Composite led the major indexes with a 1.6% advance, while the Dow Jones Industrial Average added 254 points, representing a gain of 0.5%.
CoreWeave was among the strongest performers, with its shares jumping 24.7%. The company, which provides customers with cloud-based access to artificial intelligence chips, reported that its losses during the summer were smaller than analysts had anticipated.
Investors Question the Sustainability of AI Spending
Beyond the developments at Nvidia, investors remain concerned about the possibility of a broader slowdown in the artificial intelligence industry. Questions have persisted over whether companies investing heavily in AI infrastructure will generate enough profits to justify the enormous costs associated with developing and deploying the technology.
Those concerns have contributed to significant swings in AI-related stocks, making the sector particularly sensitive to corporate developments, financial results and changes in investor expectations. Nvidia's latest controversy has added another source of uncertainty to an industry already facing questions about its long-term profitability.
Oil Prices and Currency Markets
Energy prices moved lower during Thursday's trading. U.S. benchmark crude declined 1.21% to $85.48 a barrel, while Brent crude, the international benchmark, fell 1.20% to $91.65 a barrel.
Brent crude has fluctuated between approximately $72 and $120 a barrel since the war with Iran pushed oil prices significantly higher, keeping energy markets sensitive to geopolitical developments.
The U.S. bond market was closed Wednesday in observance of Veterans Day. In currency trading, the U.S. dollar edged down to 159.74 Japanese yen from 159.79 yen. The euro also weakened slightly, trading at $1.1077 compared with $1.1091 previously.
Market Outlook Remains Tied to AI Developments
Thursday's trading highlighted the contrasting forces shaping global markets. Wall Street's recovery demonstrated continued demand for technology shares, while weaker performance across several Asian markets reflected concerns about Nvidia and the future direction of AI-related investments.
Investors are now weighing the potential impact of the developments surrounding Nvidia's leadership alongside broader questions about whether the artificial intelligence boom can deliver sustainable financial returns. These concerns continue to shape sentiment across global technology and equity markets.
