Nvidia shares tumble after Jensen Huang resigns as CEO
AMD and Broadcom shares rose as investors weighed the impact of the sudden leadership change on the AI semiconductor market.
Nvidia shares fell significantly on Thursday, November 12, following the sudden resignation of co-founder and CEO Jensen Huang. According to reports from Mint and The Economic Times, Nvidia's stock dropped as much as 10 per cent during the session, while pre-market trading saw plunges of over 13 per cent.
The company confirmed that Huang resigned with immediate effect. Chief Financial Officer (CFO) Colette Kress has been appointed as interim CEO while the board begins a search for a permanent successor. The leadership transition follows reports regarding Huang's personal relationships and questions involving corporate governance and national security implications, according to Mint.
While Nvidia shares declined, competitors saw gains. AMD shares rose by approximately 5.86 per cent and Broadcom advanced 5.54 per cent, as investors assessed if the leadership uncertainty could lead customers to diversify their semiconductor procurement, Mint reported.
Other companies in the AI ecosystem also saw movement. The Economic Times noted that Nvidia-backed CoreWeave fell 14 per cent in pre-market trading, while rival Nebius dropped 20 per cent. TSMC, which manufactures Nvidia chips, declined more than 4 per cent.
Market experts suggest that while the leadership crisis creates uncertainty, the global demand for AI computing infrastructure remains substantial. Sugandha Sachdeva, founder of SS WealthStreet, told Mint that the rally in AMD and Broadcom reflects expectations that customers might seek alternative suppliers during this period of transition.