US-listed neocloud stocks came under heavy selling pressure on Thursday after reports that Jensen Huang had resigned as Nvidia’s chief executive. Nebius Group led the decline, with its shares falling more than 16%, while CoreWeave, IREN and other AI infrastructure companies also traded lower.
The sell-off highlights the close relationship between Nvidia and the growing neocloud industry. These companies provide computing power for artificial intelligence workloads and depend heavily on Nvidia’s graphics processing units (GPUs).
Nebius leads losses as AI infrastructure stocks fall
Nebius Group recorded the steepest decline among the companies listed in the supplied market data. Its shares fell 16.25% to $129.56 on the Nasdaq.
The fall came despite the company reporting third-quarter results above analysts’ expectations. However, its forward guidance disappointed investors, adding pressure to the stock.
CoreWeave shares dropped 7.40% to $56.28, while IREN declined 7.05% to $19.37.
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Other companies also moved lower. Applied Digital fell 4.97% to $17.02, Core Scientific slipped 3.91% to $14, and Cipher Digital lost 2.04% to $6.96. TeraWulf edged down 1.65% to $13.14. The Roundhill Neocloud ETF, which tracks companies in the sector, fell 8.90% to $14.53.
Why Nvidia matters to neocloud companies
Neocloud providers offer specialised computing infrastructure for businesses developing and running AI models. Their services include access to powerful GPUs, data centre capacity and cloud computing resources.
Nvidia is a major supplier of the chips used to power these workloads. This makes companies that build their businesses around Nvidia hardware particularly sensitive to developments at the chipmaker. A change in Nvidia’s leadership could therefore raise questions among investors about its future strategy, product roadmap and relationships with customers and infrastructure partners. However, the share-price declines do not establish that Nvidia’s chip supply or commercial relationships with these companies have changed.
Nvidia leadership change puts AI sector under scrutiny
Huang co-founded Nvidia in 1993 and had served as its only chief executive. Under his leadership, the company became one of the central players in the global AI industry. The announcement also raised questions about who would lead Nvidia next and whether Huang would retain any association with the company after stepping down as CEO and board member.
The company’s board thanked him for his contributions, describing them as "profound". The pressure was not limited to neocloud companies. Semiconductor firms Micron Technology and Marvell Technology also came under pressure, alongside AI infrastructure and power equipment companies Vertiv Holdings and Bloom Energy. Nvidia rivals Advanced Micro Devices and Broadcom, however, gained. For investors, the wider question is whether the sell-off reflects short-term uncertainty over Nvidia’s leadership or concerns about the future of the AI infrastructure market.
