NVIDIA stock crash: Why did AMD, Broadcom shares rise up to 5% after Jensen Huang's exit? Experts' views

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NVIDIA stock crash: AMD shares climbed around 5.86%, while Broadcom advanced 5.54% during Thursday's trading session.

NVIDIA stock crash: Shares of Advanced Micro Devices (AMD) and Broadcom rallied on Thursday, November 12, even as NVIDIA shares tumbled following the sudden resignation of its co-founder and long-serving CEO, Jensen Huang.

AMD shares climbed around 5.86%, while Broadcom advanced 5.54% during Thursday's trading session, as investors assessed whether Nvidia's leadership turmoil could create fresh opportunities for competing semiconductor companies. Nvidia shares, meanwhile, fell as much as 4.34% during the Thursday's session.

According to market experts, the dramatic development has sent shockwaves through the global artificial intelligence (AI) industry, given Huang's instrumental role in transforming Nvidia into the world's leading supplier of graphics processing units (GPUs) and AI computing infrastructure.

Nvidia confirmed that Huang had resigned with immediate effect. The company's Chief Financial Officer (CFO), Colette Kress, has been appointed interim CEO while the board searches for a permanent successor.

The leadership change comes amid reports concerning Huang's personal relationships and questions around corporate governance and potential national security implications. These developments have also brought renewed attention to the scrutiny surrounding advanced semiconductor exports to China.

The rally in AMD and Broadcom shares reflects investor expectations that Nvidia's leadership uncertainty could accelerate customer diversification in the AI semiconductor market.

According to Sugandha Sachdeva, Founder of SS WealthStreet, investors are increasingly betting that the leadership crisis at Nvidia could create significant opportunities for its closest competitors.

She said AMD could emerge as a potential beneficiary because its Instinct GPUs and AI accelerator roadmap directly compete with Nvidia's data-centre processors.

As hyperscalers and cloud service providers continue investing heavily in AI infrastructure, uncertainty surrounding Nvidia's product execution…

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