Nvidia Shares Slump 13% as Founder Jensen Huang Resigns, Benefiting Rivals AMD and Broadcom

Wall Street experienced a significant rotation in the artificial intelligence sector this week as Nvidia Corp. shares dropped roughly 13% to trade near $162 by Friday afternoon, down from $186.64 the prior week. The sharp decline follows the sudden resignation of founder and CEO Jensen Huang, who stepped down alongside board duties after an investigation began into reports that he was targeted by a foreign intelligence effort. Chief Financial Officer Colette Kress has taken over as interim CEO.

Rather than abandoning the semiconductor trade entirely, investors redirected capital toward alternative chipmakers. Advanced Micro Devices Inc. and Broadcom Inc. emerged as major beneficiaries, registering some of the strongest performances in the S&P 100. AMD climbed significantly during the week—surging nearly 45% over five sessions before pulling back roughly 9% on Friday—while Broadcom posted its best weekly performance on record relative to Nvidia, climbing nearly 18% to approximately $345.

Nvidia faced compounding pressures late in the week following reports that Dell Technologies servers equipped with restricted chips surfaced in a Shanghai data center, dragging Dell shares down over 8%. In response to the growing uncertainty, HSBC downgraded Nvidia to Hold and sharply reduced its price target from $365 to $170, noting that the valuation has compressed to its lowest forward multiple in 15 years.

What to watch next: Investors will closely monitor Nvidia's search for a permanent successor and any further regulatory developments regarding chip export compliance.