Nvidia rivals Advanced Micro Devices (AMD) and Broadcom rallied on Thursday as Jensen Huang's departure from the chipmaker created fresh opportunities for competitors amid uncertainty over its leadership.
AMD shares have surged nearly 17% since Monday, when markets opened following reports of Huang's alleged affair with a suspected Chinese spy, CNBC report said. The stock was trading 5.29% higher at $582.17 on Thursday, while Broadcom shares gained 4.98% to $362.40, latest data showed.
Nvidia announced on Thursday, November 12 that Huang had resigned as president, CEO and a member of the board with immediate effect. The company appointed Executive Vice President and Chief Financial Officer Colette Kress as interim CEO, while initiating a search for a permanent successor, which will consider both internal and external candidates.
The board also appointed Harvey C. Jones as its first-ever chair. Jones said the board had full confidence in Kress and the existing leadership team, adding that Nvidia expected its operations, customer commitments and product roadmap to continue without interruption.
AMD is Nvidia's closest rival in the market for full rack-scale AI systems. Its Helios racks compete directly with Nvidia's Vera Rubin systems, giving customers an alternative as they seek to reduce dependence on Nvidia's costly chips, which are also facing supply constraints.