Nvidia shares fall as AMD, Broadcom gain after Jensen Huang resigns
Nvidia shares fell as much as 4.34% on Thursday after the company confirmed co-founder and chief executive Jensen Huang had resigned with immediate effect, while rival chipmakers Advanced Micro Devices and Broadcom rallied on expectations of a shift in AI hardware procurement.
AMD climbed around 5.86% and Broadcom advanced 5.54% in the session. Nvidia's chief financial officer, Colette Kress, has been appointed interim CEO while the board searches for a permanent successor.
The leadership change comes amid reports concerning Huang's personal relationships and questions around corporate governance and potential national security implications, and has brought renewed attention to scrutiny of advanced semiconductor exports to China.
Sugandha Sachdeva, founder of SS WealthStreet, said AMD could benefit because its Instinct GPUs and AI accelerator roadmap compete directly with Nvidia's data-centre processors, and that hyperscalers and cloud providers may diversify procurement. Broadcom, she said, stands to gain from demand for custom-designed AI accelerators and networking infrastructure. She cautioned that any meaningful shift in market share is likely to be gradual rather than immediate, and that the crisis does not necessarily signal a fundamental slowdown in AI processor demand.
Brokerage firm Vested said the reaction reflects concerns over leadership continuity, governance and future direction, but argued investors should separate that uncertainty from Nvidia's underlying business, citing AI computing demand, its CUDA software ecosystem and cloud partnerships. It said the stock could stay volatile until there is greater clarity on succession.
