Alphabet’s restructuring of its AI leadership sparks investor concerns, dragging Nasdaq lower despite Nvidia’s continued gains.
The Nasdaq Composite fell 0.9% at the close, extending losses by 0.3 percentage points in the final minutes, as Alphabet shares declined more than 4%. The drop followed news that AI chief Demis Hassabis is stepping back from day-to-day management of Google DeepMind to become Alphabet’s chief scientist, fueling fears of setbacks in AI development.
Profit-taking after two strong sessions also weighed on markets, though Nvidia shares rose 3.8%, marking a fifth consecutive day of gains. Investors appear to be pricing in sustained AI-driven capital expenditure by hyperscalers, with Nvidia’s role in $250 billion of spending seen as low-risk due to its 80% margins.
The leadership changes at Alphabet include the departure of Jeff Dean and other senior researchers to launch a new AI venture, adding to uncertainty. The Nasdaq’s decline contrasted with broader market resilience, underscoring sector-specific volatility.