Nvidia shares fall 4.6% after Jensen Huang resigns as CEO; AMD, Broadcom rise
In brief
- Nvidia traded down 4.59% at $165.75 Thursday afternoon, per Decrypt
- Nvidia stock fell more than 14% at one point before partly recovering
- Colette Kress, Nvidia's CFO, named interim CEO after Huang's immediate resignation
- AMD rose 5.79% and Broadcom 5.65% in intraday trading
- CoreWeave fell 7.49% a day after jumping 24.7% on earnings
Rivals moved higher
The figures below are intraday Thursday-afternoon prices from Decrypt's report, not closing prices. Nvidia itself opened at $151.01 and hit an intraday low of $148.80 before climbing back toward $165.75.
AMD rose 5.79% to $584.89 after opening at $569.28, and Broadcom gained 5.65% to $364.73 (it opened at $356.80). Alphabet added 2.06% to $299.49.
Decrypt noted that AMD competes directly with Nvidia in AI accelerators, and that uncertainty over Nvidia's leadership could make customers more interested in using more than one chip supplier. Broadcom's custom AI processors and networking tech give large customers another way to rely less on Nvidia. Google's been expanding its Tensor Processing Unit business too, and on Monday it unveiled two new AI chip systems aimed at privacy-sensitive and memory-intensive workloads.
Thursday's gains don't establish that Nvidia has lost customers, Decrypt said.
CoreWeave and suppliers slipped
CoreWeave, which Nvidia backs, fell 7.49% to $56.22 after opening at $50.91. That drop came one day after the stock jumped 24.7% on quarterly revenue growth of 168%, so it's not a clean read on Nvidia's troubles. Nvidia invested another $2 billion in CoreWeave in January and has an initial $6.3 billion agreement to buy unused computing capacity through April 2032. Neither company had announced changes to those agreements.
Supplier stocks were weaker. TSMC (which manufactures Nvidia's advanced processors) fell 1.15% to $408.61, Micron lost 2.70% to $789.43 and SK Hynix declined 3% to $137.98. Decrypt cautioned that these companies depend on wider chip demand, so their losses can't be blamed entirely on Nvidia's leadership problems.
What comes next for Nvidia
Nvidia's board said it expects operations and customer commitments to continue without interruption, according to Decrypt. The company's scheduled to report quarterly earnings on November 17, with Kress now leading the business.
The leadership change also lands on a stock that was already under pressure. Nvidia had lost about $1.27 trillion in market capitalization between October 6 and November 6, before the crisis began.
