Nvidia Plunges 4% on Jensen Huang's Resignation... AMD and Broadcom Surge 5%

[Financial News correspondent Lee Byung-chul in New York]  Jensen Huang's abrupt resignation as Nvidia CEO, combined with uncertainty over the Iran war, sent all three major U.S. stock indexes lower. Nvidia shares fell more than 4%, hitting a 52-week low, while rivals AMD and Broadcom surged more than 5%. As uncertainty over Nvidia's management grows, the competitive landscape in the AI semiconductor market also appears to be shifting.
On the 12th (local time), the Dow Jones Industrial Average (DJIA) closed at 52,297.09 on the New York Stock Exchange (NYSE), down 189.40 points (0.36%) from the previous trading session. The S&P 500 Index fell 0.35% to 7,592.40, while the tech-heavy NASDAQ Composite Index dropped 0.39% to 25,366.09.
The market's attention was focused on Nvidia that day. The company announced that CEO Jensen Huang had resigned and that Chief Financial Officer (CFO) Colette Kress would serve as interim CEO. Huang stepped down from the company's management 33 years after founding it, following revelations of an extramarital relationship with a woman suspected of being a Chinese spy.
Nvidia shares briefly fell by double digits immediately after the resignation announcement. Bargain buying later helped narrow the losses, but the stock ultimately fell more than 4%, hitting a 52-week low.
By contrast, Nvidia's rivals surged on expectations of a windfall. AMD and Broadcom shares each rose more than 5%. Alphabet, Google's parent company and a major Nvidia customer that is pursuing development of its own AI semiconductors, also gained nearly 2%.
The market focused on the possibility that Nvidia's crisis could create an opportunity for its rivals to expand their market share, rather than lead to a decline in demand across the AI industry as a whole.
Uncertainty surrounding the Iran war also weighed on stocks. U.S. President Donald Trump said that day on his social media platform Truth Social, "We don't need a deal with Iran. Those days are long gone."
International oil prices surged after Trump's hardline remarks. West Texas Intermediate (WTI) crude futures settled at $88.74 per barrel, up 2.55% from the previous trading session. Brent crude futures, the international oil benchmark, also closed up 3.3% at $95.82 per barrel.




[email protected] Correspondent Lee Byung-chul Reporter