NVIDIA stock crash: Shares of Advanced Micro Devices (AMD) and Broadcom rallied on Thursday, November 12, even as NVIDIA shares tumbled following the sudden resignation of its co-founder and long-serving CEO, Jensen Huang.
AMD shares climbed around 5.86%, while Broadcom advanced 5.54% during Thursday's trading session, as investors assessed whether Nvidia's leadership turmoil could create fresh opportunities for competing semiconductor companies. Nvidia shares, meanwhile, fell as much as 4.34% during the Thursday's session.
According to market experts, the dramatic development has sent shockwaves through the global artificial intelligence (AI) industry, given Huang's instrumental role in transforming Nvidia into the world's leading supplier of graphics processing units (GPUs) and AI computing infrastructure.
Nvidia confirmed that Huang had resigned with immediate effect. The company's Chief Financial Officer (CFO), 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. These developments have also brought renewed attention to the scrutiny surrounding advanced semiconductor exports to China.