US tech stocks reel on Jensen Huang's resignation; AMD, Broadcom seen as beneficiaries

US technology stocks came under pressure Thursday (local time) after Nvidia CEO Jensen Huang stepped down, sending the Nasdaq lower while rivals AMD and Broadcom rose on expectations they could capture business from the AI chipmaker.

The Nasdaq Composite opened down about 1.5% from the previous session in the wake of Huang's resignation, before paring losses. As of 10:21 a.m. local time, the index was down 0.69%. The S&P 500 fell 0.45% and the Dow Jones Industrial Average declined 0.18%.

Nvidia opened down 13.08% at $151.00, and at one point during the session fell more than 14% from the prior close.

According to Bloomberg, the early-session plunge pushed Nvidia's market capitalization below $4 trillion for the first time since 2025, with as much as $601 billion wiped off its value at the low.

Huang stepped down Thursday after admitting to an affair with a woman named Alice Huang, who is suspected of ties to Chinese intelligence, and following reports that he had also carried on an extramarital relationship with a direct-report executive. Nvidia's board announced his resignation and named Chief Financial Officer Colette Kress as interim CEO.

Concerns about a leadership vacuum at Nvidia are weighing on broader investor sentiment toward AI-related stocks. Oracle, down 2.3%, and Micron Technology, down 4.4% — both seen as beneficiaries of expanding AI data center investment — were among the decliners.

Nvidia's rivals AMD and Broadcom, by contrast, rose roughly 1 percent and 5 percent, respectively. The gains reflect expectations that customers may move to diversify their semiconductor supply sources as management uncertainty at Nvidia grows following Huang's departure.

AMD produces AI chips that compete directly with Nvidia's GPUs, while Broadcom is involved in developing custom AI semiconductors for major technology companies including Google.

Charu Chanana, chief investment strategist at Saxo Bank, said AMD, Broadcom, Alphabet and Samsung Electronics could all benefit if Nvidia's customers begin diversifying their supply chains.

However, analysts note that Nvidia's technological edge and software ecosystem in the AI chip market make it difficult for rivals to gain significant market share in the near term.

Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, called Huang's resignation "the worst-case scenario in this situation," adding that Huang "was not just an executive — he was the person who defined the company's vision."

Landsberg said Nvidia's share price had reflected not only its chips but also "Huang's vision and his ability to lead the company," and forecast that further downward pressure on the stock would follow.