Stocks are on edge as significant developments unfold, with Nvidia at the center of a storm following a report detailing CEO Jensen Huang's alleged extramarital affair and potential board action. The news has sent shares plummeting, erasing recent gains and raising questions about the tech giant's leadership and future performance. Meanwhile, Apple continues its ascent, hitting new highs on strong fundamentals and regulatory approvals for its latest AI features.
Nvidia's Crisis: The New York Times reported that Nvidia CEO Jensen Huang allegedly had an extramarital affair with an employee. Concurrently, The Wall Street Journal indicated that the Nvidia board is preparing to oust him. These revelations have triggered a significant sell-off, with shares down 8% in extended trading. This adds to a challenging week, marking a 20% decline over the past seven days and a 30% drop from its October 6th peak. Jim Cramer expressed being "shaken" by the news on "Mad Money," advising investors to remain diversified but cautioning against completely abandoning data centers, which could lead to missed upside.
Nebius in Focus: Nebius, a cloud computing company, is set to report earnings before the market opens, with live analysis on "Squawk Box" at 7 a.m. ET. The stock has become a battleground for retail investors, experiencing a dramatic 15% surge on Wednesday after a prior 50% drop from its June high.
Apple's Continued Momentum: Apple reached a new all-time high on Wednesday, extending its impressive recovery. Shares are now up 46% from their 52-week low set in January. CNBC's MacKenzie Sigalos reports that underlying fundamentals remain robust, bolstered by Chinese regulatory approval for Apple Intelligence on iPads and Macs. Data from UBS suggests increasing wait times for the foldable iPhone Duo, a positive sign for demand. However, Sigalos notes that Apple now trades at 39 times earnings, exceeding the average analyst price target.
Other Tech Earnings: Following the market close, Cisco Systems is scheduled to report. The stock has seen a 16% decline in the last three months and is down 23% from its June high. Applied Materials will also release its earnings, with shares down nearly 25% over the past three months and 46% from their June peak, despite a 6% rise on Wednesday. Cerebras is another tech company reporting, with its stock down 57% in three months and 74% from its May high, though it saw a nearly 8% increase on Wednesday.
Burberry Looks to Fashion Forward: In the realm of high fashion, Burberry is set to report its earnings on Thursday morning. The luxury brand's stock has declined 28% from its January high.
