Nvidia turmoil weighs on tech stocks before earnings

Technology shares came under pressure Thursday as investors focused on turmoil at Nvidia ahead of the AI chipmaker's quarterly earnings next Tuesday.

Nvidia shares were down about 6% in pre-market trading. The stock has lost 24% over the past month, wiping about $1.4 trillion from the company's market value.

Chief executive Jensen Huang is facing a board revolt amid a probe into an affair with Alice Huang, a senior executive at Singapore-based data centre company Megaspeed. US officials believe Alice Huang was working for Chinese intelligence, while Beijing has rejected the spying allegation.

The New York Times reported Wednesday that Jensen Huang was also involved in a second extramarital affair, with Nvidia vice president of health care Kimberly Powell. The report prompted a last-minute board meeting, but no official announcement had been made on the outcome.

Asian markets fell, with Tokyo, Seoul, Hong Kong and Shanghai all lower at the close. In Europe, London, Paris and Frankfurt rose in midday trading, and Frankfurt's DAX reached a record high above 27,000 points.

Kathleen Brooks, research director at XTB, said the Nvidia fallout was helping push investors toward European markets that are traditionally less exposed to technology. Charu Chanana of Saxo Markets said an abrupt exit by Huang without a credible succession plan could force investors to reassess how much Nvidia's future depends on him personally.

Elsewhere, Burberry shares rose 9% after the British luxury group returned to profit in the first half. Oil prices slipped, while the dollar steadied amid growing expectations that the Federal Reserve will raise interest rates next month.