Jensen Huang’s Future At Nvidia Hangs In Balance As Board Weighs Fallout: Analysts Warn Of Challenges Ahead

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The news triggered mixed moves across the semiconductor space. Nvidia shares plunged 7.7% in overnight trading in the evening, while those of competitors Advanced Micro Devices…

The Nvidia saga took a fresh turn on Wednesday with reports outlining a second affair CEO Jensen Huang shared, this time with a subordinate, and the company's board reportedly planning to oust him.

The news triggered mixed moves across the semiconductor space. Nvidia shares plunged 7.7% in overnight trading in the evening, while those of competitors Advanced Micro Devices (AMD) and Broadcom (AVGO) advanced 3.5% and 2.5% respectively.

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Nvidia-backed Intel (INTC) fell 2%, and while Micron (MU) and Super Micro Computer (SMCI), which sell their products alongside Nvidia chips, dropped 2% and 4.1% respectively. The iShares Semiconductor ETF (SOXX) slid 1.6% lower.

Huang's possible departure would have implications well beyond Nvidia's business. The company is the leading supplier of chips powering the AI boom, but Huang has also built influence as a dealmaker, directing Nvidia's considerable resources toward investments across the AI supply chain and in a range of startups.

Between the revelation of both affairs, Nvidia stock, $NVDA, has erased about $700 billion in market capitalization, according to The Kobeissi Letter. NVDA stock is down 28% from its peak on Oct. 6. The chipmaker is scheduled to report its quarterly earnings on Nov. 17.

Commentators said that while Huang's future as the CEO is uncertain, Nvidia's dominance in the market will likely stay intact.

"Remember: AI infrastructure customers will act in their best interest. That means they'll keep buying just as many $NVDA chips with or without Jensen," Gene Munster, managing partner at Deepwater Asset Management, said in an X post, adding that he expects the stock to bounce-back next week.

Investor Dan Niles said Nvidia's product pipeline and "deep bench of direct report" will sustain the chipmaker for two years.

Début de l'article, extrait de Yahoo Finance. Pour lire la suite, ouvrez l'article chez le média.