CoreWeave (CRWV.US) rose nearly 25%, Nvidia (NVDA.US) crashed after the market: Hwang In-hoon's ouster storm

According to Woofun AI, the US stock market showed significant differentiation on Wednesday, November 11. CoreWeave (CRWV.US)'s stock price soared 24.71% after disclosing strong third-quarter earnings reports, while Nvidia (NVDA.US) closed higher during the regular trading session, but after closing, the stock price plummeted more than 8% after the market due to a sudden governance crisis.

The day coincided with US Veterans Day. The stock market opened normally but the bond market was closed, and the major stock indexes were fully successful: the Dow rose 254.60 points to 52,486.49 points, or 0.49%, successfully recovering all of the previous day's decline; the S&P 500 rose 1.31% to 7,619.38 points, about 2.9% from the all-time high set in October, basically erasing the decline caused by the AI sector sell-off last week; the Nasdaq Composite Index rose 1.60% to 25,466.19 points, completely recovering the general election All subsequent losses.

The Panic Index (VIX) VIX fell 10.17% to 17.48, indicating that market sentiment stabilized during day trading. The Dow's constituent stocks varied. Caterpillar (CAT.US) rose 2.91%, Cisco (CSCO.US) rose 2.66%, while McDonald's (MCD.US) fell 2.61%, Microsoft (MSFT.US) fell 2.26%, and Amazon (AMZN.US) fell 1.74%.

According to data compiled by Woofun AI, CoreWeave's strong performance injected short-term vitality into technology stocks. It closed at $60.77, an increase of 24.71%. After the market on Tuesday, the company reported third-quarter revenue of US$3.66 billion, far exceeding US$1.37 billion in the same period last year and exceeding market expectations of US$3.55 billion. Based on this, the company raised its full-year revenue guidance from $12.4 billion to $13.2 billion to $13 billion.

This benefit extended to the storage and hardware sector. Micron (MU.US) stock surged 11.89% to $811.30, Dell (DELL.US) rose 11.75%, and Seagate (STX.US) rose 9.99%. However, the market focus quickly turned to Nvidia. The stock closed up about 2.9% to $173.73 during the regular trading session, after a cumulative decline of nearly 10% over the previous two trading days. The trend changed abruptly after the market closed. The “Wall Street Journal” quoted people familiar with the matter as reporting that Nvidia's board of directors was preparing to remove CEO Wong In-hoon. The reason was that another media revealed that Wong In-hoon had an extramarital relationship with Kimberly Powell, vice president of the company's medical business. Reuters later paraphrased the report and stated that it was unable to independently verify the allegations; it is alleged that the board of directors may hold a meeting on the 11th as soon as possible to discuss Wong In-hoon's stay, and there is no final decision as of press time. Impacted by this, Nvidia's share price fell more than 8% after the market. Counting the after-market decline, the market value evaporated by about $600 billion this week. Competitor AMD (AMD.US) rose about 4% after the market and Broadcom (AVGO.US) rose about 3%. The trend is the exact opposite of Nvidia. Hwang In-hoon, 63, holds about 3.6% of Nvidia's shares, and the company currently has no clear successor.

In terms of the macro environment and commodities, expectations for interest rate hikes are still strong. The October CPI data released on Tuesday exceeded expectations. Sharecast indicated that the market's expectations for the 25 basis point rate hike at the next meeting of the Federal Reserve had risen to about 90%. According to data from the American Mortgage Bankers Association, mortgage applications increased 6.2% month-on-month in the week ending November 6. Oil prices stopped falling and rebounded, Brent crude rose 1.39% to $92.76 per barrel, and WTI crude rose 0.57% to $86.53 per barrel. Iranian security officials said they would not allow any concentrated nuclear materials to leave the country, causing supply concerns. Previously, Brent had a cumulative decline of about 21% since November, and WTI had fallen by about 17%. As of Wednesday evening, the futures market had reflected some concerns. NASDAQ 100 futures fell 1%, S&P 500 futures fell 0.4%, and Dow futures were basically flat.

The key market variables in the next few days will focus on Nvidia's governance results and macroeconomic data. There is still no conclusion on whether Hwang In-hoon will stay. The news before and after the opening of the market on Thursday may dominate the trend of technology stocks. The number of initial jobless claims will be announced at 21:30 on Thursday, October existing home sales data will be released at 23:00. Cisco and Applied Materials (AMAT.US) will release financial reports after the Thursday market. The US October PPI data will be released at 21:30 on Friday. On November 17, Nvidia will release its third quarter earnings report. At that time, the market will re-evaluate its fundamentals and governance risks. This incident highlights the governance weaknesses faced by large technology companies in the midst of rapid expansion. If the board of directors makes a decision to dismiss, it may have a severe short-term impact on confidence in the global AI industry chain.