CoreWeave (CRWV) stock dropped 7% after trimming losses on Thursday as the fallout from Nvidia’s leadership change rippled through the AI trade.
Nvidia (NVDA), which owns more than 10% of CoreWeave and is a major chip supplier to the AI infrastructure provider, is facing heightened scrutiny as the board announced Jensen Huang would resign immediately and named CFO Colette Kress as interim CEO.
CoreWeave stock has been volatile in recent weeks amid concerns about AI financing. Those fears appeared to ease on Wednesday after the company posted better-than-expected quarterly results and said it does not plan to take on more expensive debt through 2027.
56.10 -4.67 (-7.68%)
As of 2:03:41 PM EST. Market Open.
Shares of other Nvidia partners have also come under pressure on Thursday.
Super Micro Computer (SMCI) stock plunged nearly 12% as Semafor reported widening scrutiny of Nvidia amid multiple US Justice Department investigations.
The report said one of the probes, on antitrust grounds, focuses on Nvidia, while the other two target AI infrastructure procurement firm Megaspeed and Super Micro. The California-based company makes AI servers which are stacked with Nvidia chips.
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