'Nvidia Division' stock price plummets... Nevius 17%↓

Super Micro 11%↓… Semiconductor stocks had a relatively small decline.

(Seoul = Yonhap News) Reporter Joo-ho Jeong = The shock of CEO Jensen Hwang's resignation spread even further to companies in the 'AI infrastructure ecosystem' that had relied on Nvidia's investment and chip supply.

On the New York Stock Exchange on the 12th (local time), the stock price of Neocloud company Navius ​​closed at $128.64, down 16.8% from the previous day.

It fell more than 23% at one point during the day, recording the largest drop since January of last year.

Coreweave, which soared 24.7% the previous day due to strong performance, fell by more than 17% during the day and closed down 6.9%.

Server company Supermicro fell 11.3%, and data center companies Iren and Applied Digital fell 6.5% and 5.4%, respectively.

The American Depository Receipt (ADR) of China's Alibaba, which has used a large amount of Nvidia chips, also plummeted by 7.1%.

On the same day, NVIDIA stock prices fell 4.3%. After reports were made that the board of directors was preparing to dismiss CEO Hwang, it fell as much as 14.3% for about 24 hours, but the decline in after-hours trading was reduced to 4.2% due to an influx of low-price buyers.

Bloomberg News pointed out the aftermath of CEO Hwang's resignation, saying that AI infrastructure companies such as Navius ​​and Coreweave are purchasing components from Nvidia and have Nvidia as an investor.

Neocloud companies are borrowing huge amounts of money to build data centers and relying on the demand from AI developers such as OpenAI and Antropic, and have been considered a weak link in the 'AI circular investment' structure with NVIDIA at the top.

Navius' own performance forecast announced on this day was also hindered.

Navius' third quarter sales exceeded market expectations at $980.8 million (approximately KRW 1.3 trillion), but as sales scheduled to be reflected in December were pushed back to next year, this year's sales forecast was lowered to the lower end of the existing range ($3 billion to $3.4 billion).

Next year's sales were suggested to be up to $13 billion (about 17.3 trillion won).

Supermicro is also involved in the Megaspeed investigation involving Alice Hwang, who was accused of CEO Hwang's affair.

Singapore's Ministry of Home Affairs said today that server supplier Supermicro "cooperated only to a limited extent" during the Megaspeed investigation.

Semiconductor supply chain stocks that supply components to Nvidia had a relatively small decline.

SK Hynix ADR, listed on the U.S. stock market, fell 3.2% and SanDisk fell 4.1%, while TSMC ADR (-1.9%) and Micron (-1.6%) also showed weakness.

Oracle, a large customer of Nvidia, fell 1.0%, and Intel, in which Nvidia invested $5 billion, fell 2.1%.

On the other hand, Nvidia's competitors, AMD and Broadcom, rose 5.9% and 5.5%, respectively, on expectations of a return. Accordingly, the Philadelphia Semiconductor Index fell only 0.5%.