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Chip stocks spent four sessions clawing out of last week's AI rout. Nvidia's boardroom crisis just pulled the rug out from under them. The comeback was fragile to begin with. A Yahoo Finance basket of 62 chip stocks had won back less than a third of the market value it lost from early October to last week's low, and the PHLX Semiconductor Index (^SOX) was still stuck below its 200-day moving average despite a rally of about 17% off that low. Then came Nvidia (NVDA). The stock tumbled after the bell Wednesday following reports that its board is preparing to oust CEO Jensen Huang, falling below a floor near $164 that had held twice in the past 14 months.
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