Nvidia shares have fallen 11% so far this week while AMD has gained 30% and Broadcom 24%, CNBC reported, as investors bet that Jensen Huang's departure could loosen Nvidia's grip on AI chips. TSMC, which manufactures Nvidia's most advanced processors, rallied 11%, and analog chipmakers Texas Instruments, Analog Devices and Infineon rose about 13%, 12% and 14%. CNBC said Huang resigned after revelations about multiple affairs, including with a woman the U.S. intelligence community believes is a Chinese spy.
"Names such as TSMC, names such as Broadcom, names such as Advanced Micro will come as winners of this because they don't have this overhang of a management disruption," Farzin Azam, managing director of equities trading at Mizuho Americas, told CNBC.
Dylan Patel, CEO of research firm SemiAnalysis, told CNBC that Huang had personally cultivated supplier relationships that helped Nvidia secure scarce production capacity, and that Google and Amazon, already gaining ground, could accelerate without his influence. Patel said Nvidia is only about a year ahead of its biggest competitors.
Mark Franklin of Manulife Investment Management said major tech companies project higher AI spending in 2027, with further increases possible in 2028. Azam said he expects Nvidia's November 17 earnings to remain strong, but warned that investigations and management uncertainty could limit a sustained recovery.
