Tech & AI
Nvidia loses founder Jensen Huang as chief executive and board member
Jensen Huang, who co-founded Nvidia in 1993, resigned as chief executive and left its board on Thursday. The shares fell, and rival chipmakers AMD and Broadcom rose.
Quick Read
- Jensen Huang, Nvidia's co-founder, resigned as chief executive and left the company's board on Thursday.
- Nvidia's shares fell sharply, while rival chipmakers AMD and Broadcom both rallied.
- Nvidia rose in after-hours trading, a thin session where moves can shrink or reverse at the next open.
- Nvidia is scheduled to report quarterly results on Nov. 17.
What happened at Nvidia?
Jensen Huang stepped down as Nvidia's (Nasdaq: NVDA) chief executive on Thursday. He also gave up his seat on the company's board. Huang co-founded the graphics-chip maker in Silicon Valley in 1993.
Why it matters: The stock tumbled 4.3% to close at $166.19. By the close, Nvidia had lost $180 billion in market value.
By the numbers: That left the shares 30.5% below their 52-week high of $239.24. A $1,000 stake bought a year ago was worth $858 at Thursday's close.
How did rival chip stocks react?
Advanced Micro Devices (Nasdaq: AMD), Nvidia's closest rival, was the standout winner. AMD rose 5.9% and gained $53 billion in market value.
Broadcom (Nasdaq: AVGO) rose 5.5% and gained $91 billion. Even so, the value Nvidia lost was larger than what either rival gained.
The wider market moved far less. The S&P 500 fell 0.4%, and the Nasdaq-100 fell 0.3%.
What happened after the close, and what comes next?
What’s next: Nvidia rose 1.0% in after-hours trading, ending the late session at $167.84. That session follows the regular close, and far fewer buyers and sellers take part. Broadcom rose 0.7% in the same session.
Moves in that thin trading can shrink or reverse once the regular session opens at 9:30 a.m. ET.
The open question is who will lead Nvidia and whether its plans change. Nvidia's quarterly results, scheduled for Nov. 17, could give an early look at how management describes the company after Huang.
For readers
What it could mean for you: If you own Nvidia shares directly, Huang's departure reaches you in full, with no other holdings to cushion it. The stock now trades without its co-founder in the top job or on the board. The Nov. 17 results may show whether management's message on demand and spending shifts. News about who will run the company could move the shares again. If you hold AMD or Broadcom directly, you sit on the other side of the same story. Those gains could also prove sensitive to what Nvidia says next.
Questions and answers
Did Jensen Huang leave Nvidia?
Yes. Huang resigned as Nvidia's chief executive on Thursday and also left the company's board. He co-founded Nvidia in 1993.
Why did AMD stock rise when Huang resigned?
AMD is Nvidia's closest rival. It was the day's standout winner on the day Huang left Nvidia. Broadcom, another chipmaker, also rose.
When does Nvidia report earnings next?
Nvidia's quarterly results are scheduled for Nov. 17. They could show how management describes the company after Huang's exit.
The numbers
| Advanced Micro Devices (AMD) price | $585.30 |
|---|---|
| Advanced Micro Devices (AMD) change | +5.86% |
| Advanced Micro Devices (AMD) market value | $960 billion |
| Advanced Micro Devices (AMD) 52-week high | $649.42 |
| Broadcom (AVGO) price | $364.36 |
| Broadcom (AVGO) change | +5.54% |
| Broadcom (AVGO) market value | $1.7 trillion |
| Broadcom (AVGO) 52-week high | $481.57 |
| Nvidia (NVDA) price | $166.19 |
| Nvidia (NVDA) change | −4.34% |
| Nvidia (NVDA) market value | $4 trillion |
| Nvidia (NVDA) 52-week high | $239.24 |
| S&P 500 change | −0.35% |
| 10-year Treasury yield | 5.10% |
Thursday’s close
Companies in this story
Share this story
Not investment advice.
