Nvidia shares slide as Jensen Huang steps down; AMD and Broadcom climb

what happened

Nvidia shares fell as much as 14% during the regular session before recovering part of the losses. In after-hours trading on Friday they were down 4.34% at $166.19, yet the company still closed above the $4 trillion market capitalisation level, according to TradingView, citing CNBC. Jensen Huang said he will leave his posts as chief executive and board member with immediate effect. Colette Kress, the company's finance chief, will act as interim CEO.

Rivals moved the other way. After hours, AMD rose 5.86% to $585.30 and Broadcom gained 5.54% to $364.36. Over the week, Nvidia has dropped 11%, while AMD is up 30%, Broadcom 24% and Taiwan Semiconductor Manufacturing Company, which builds Nvidia's most advanced processors, 11%.

Dylan Patel, chief executive of the research firm SemiAnalysis, told CNBC that Huang personally built ties with manufacturers and component suppliers, which helped Nvidia secure scarce capacity. Google and Amazon, he said, are already expanding their own AI chip production and could move faster without Huang's influence over suppliers.

why it matters

The move reflects more than one day's trading: analysts see a possible shift in influence across the AI chip supply chain. TSMC stands to gain whichever designer wins share, and investors appear to be moving out of riskier AI names into steadier plays.

market impact

Nvidia and chipmakers: the CEO exit weighs on Nvidia shares, while rivals and TSMC rise on share-gain prospects

• ▼Nvidia shares pressure down — Huang's exit creates uncertainty over leadership and access to scarce supply
• ▲AMD shares pressure up — rivals may gain production capacity and market share from Nvidia
• ▲TSMC shares pressure up — the foundry benefits whichever chip designer wins the AI market share battle

tags

instruments

on polymarket