AI stocks took a sharp dive on Friday after Jensen Huang, the longtime CEO of NVIDIA, unexpectedly resigned.
Investors got spooked about the future of AI funding, and shares of NVIDIA-backed companies like CoreWeave and Nebius quickly fell by nearly 9%.
Nasdaq-100 down 2% semiconductors down 5.1%
The shockwaves hit big tech indexes too: the Nasdaq-100 dropped 2% (about $800 billion in market value if the losses hold through the close), and the Philadelphia Semiconductor Index shed 5.1%.
Chipmakers like AMD and Broadcom also saw their stock prices tumble.
With NVIDIA now eyeing Arm CEO Rene Haas as a possible new leader, all eyes are on next week's NVIDIA earnings report and Anthropic's upcoming public debut to see where the AI sector goes from here.