Asian shares and US futures declined on Thursday as concerns over leadership at chipmaker Nvidia weighed on artificial intelligence-related stocks.

In Hong Kong, the benchmark Hang Seng Index closed down 307 points, or 1.3 percent, to 24,008 on turnover of HK$202.65 billion.

The tech index plunged 95 points, or 2.4 percent, to 3,931 while the China enterprises index fell 114 points, or 1.4 percent, to 8,056.

Up north, the benchmark Shanghai Composite Index ended down 24 points, or 0.67 percent, at 3,655.

The Shenzhen Component Index fell 191 points, or 1.68 percent, to 11,197 while the ChiNext Index dived 62 points, or 2.44 percent, to 2,509

In after-hours trading, Nvidia’s shares fell 8.6 percent after reports said Nvidia’s board was meeting late on Wednesday to discuss the situation surrounding its chief executive, Jensen Huang and his extramarital affairs.

Nvidia's shares climbed 2.9 percent on Wednesday.

Its shares have fallen after the company said it was investigating Huang, who has admitted to a relationship with a businesswoman.

Traders' nerves are being tested by the crisis at Nvidia, with co-founder Huang facing the boot after he admitted a relationship with Alice Huang, a senior executive at Singapore-based data centre company Megaspeed.

The New York Times reported on Wednesday that Huang was also involved in a second extramarital affair, with the company's vice president of health care, Kimberly Powell.

The tech company's board was preparing to meet as soon as Wednesday to determine Huang's future, according to the Wall Street Journal, which quoted people familiar with the matter.

Huang has built Nvidia to be one of the world's biggest and most important companies, designing advanced chips crucial to the AI buildout that has helped drive stock markets to record highs and boosted economies around the world.

"Nvidia has spent years convincing investors that it is one of the most important companies in the AI revolution," wrote Charu Chanana at Saxo Markets.

"Now, the biggest question surrounding the company is not about its chips, competitors or earnings. It is about its founder."

She said Huang was key to the firm's future, including dealings with governments.

"Nvidia's technological advantage would not disappear with his departure," she added.

"Its CUDA software ecosystem, product capabilities and customer relationships remain formidable strengths.

"But an abrupt exit without a credible succession plan could force investors to reassess how much of Nvidia's future depends on Huang personally."

In Tokyo, the Nikkei reversed early gains to end 429 points, or 0.7 percent, lower at 60,819 amid reports that a potential sacking was in the offing at Nvidia for its founder, Jensen Huang.

The broader Topix edged up almost eight points, or 0.2 percent, at 3,937.

In Seoul, the Nvidia reports also took its toll on the Kospi, sending it down 32 points, or 0.61 percent, to 5,342. (Agencies)




Edited by Tony Sabine