AI Roundup: Nvidia CEO's Exit Dominates Headlines - Coreweave, Cisco Results Boost AI Sentiment

(MENAFN- AsiaNet News)

• Huang will now appear before Congress, where he will be questioned about his relationships and whether he may have revealed sensitive information.
• CoreWeave posted a 'beat and raise,' triggering gains in AI-linked stocks.
• Japan's SoftBank reported a quarterly loss of about $7 billion, its first swing into the red in nearly two years, amid pressure from AI investments.

Nvidia CEO Jensen Huang's admission of an illicit relationship with a suspected Chinese spy and his resignation on Thursday dominated headlines this week and is turning into a national security and political issue.

The market reaction has been broadly positive, with investors moving funds to Nvidia competitors. Advanced Micro Devices (AMD) and Broadcom (AVGO), as well as Big Tech firms pursuing custom-chip gains as the Nvidia saga unfolded, rose, while firms with investments and deep partnerships with Nvidia dipped. 

The Invesco QQQ Trust Series 1 (QQQ) rose nearly 5% in the week through Thursday, while the iShares Semiconductor ETF (SOXX) gained 13.5%. Nvidia dipped 11% and is heading for its worst week since March 2025.

Here's a roundup of the stories:

Nvidia's CEO Resigns Amid Security Concerns

Nvidia's Huang resigned on Thursday after reports about his relationships – including one with a businesswoman suspected of spying for China – sparked a major controversy and security risks. Nvidia named CFO Colette Kress interim CEO, but the departure has raised questions about the AI chipmaker's future and the stability of the broader AI industry.

Huang will now appear before Congress, where he will be questioned about his relationships and whether he potentially revealed sensitive information.

CoreWeave Revives Neocloud Sentiment

CoreWeave delivered better-than-expected third-quarter results and raised its annual revenue forecast, easing fears around the durability of the neocloud sector. The upbeat report lifted AI-linked stocks mid-week after declines due to the Nvidia saga, which began at the start of the week.

CoreWeave also said it would not ​tap unsecured debt markets after a recent spike in borrowing costs and that cash flow from existing ​contracts would cover both current and future debt repayments.

Cisco Reports Beat And Raise Quarter

Cisco reported better-than-expected fiscal first-quarter results and raised its full-year forecasts on Thursday, signaling strong demand for its networking gear from AI data centers, with CEO Chuck Robbins saying the market is in the early stages of a“networking super cycle.”

SoftBank's AI Bets Weigh Results

Japan's SoftBank reported a quarterly loss of about $7 billion, its first swing into the red in nearly two years.

Much of the loss was due to $3.7 billion in charges the group took on equipment for power generation for AI data-center projects in the U.S., as well as a drop in the share price of companies including Coupang, a South Korean e-commerce site. SoftBank said it is slowing its AI investments.

 

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