US technology stocks stumble due to Jensen Huang's shock... AMD and Broadcom surged around 5% (comprehensive)

Artificial intelligence (AI)-related technology stocks, including Nvidia, showed weakness on the New York Stock Exchange on the 12th (local time) due to the shock of former Nvidia CEO Jensen Huang's sudden resignation.

However, NVIDIA's competitors, AMD and Broadcom, showed a contrasting trend, rising by more than 5% on expectations of a return.

On this day, Nvidia ended trading at $166.19, down 4.34% from the previous day.

After starting trading at $151.00, a 13.08% drop from the previous trading day, it fell more than 14% at one point during the session, but later recovered much of the loss.

According to Bloomberg News, due to the early trading plunge, Nvidia's market capitalization fell below $4 trillion for the first time since 2025, and up to $601 billion (approximately KRW 802 trillion) at one time evaporated.

Former CEO Hwang admitted to an affair with Alice Hwang, a woman suspected of being linked to Chinese intelligence agencies, and eventually resigned on this day amid reports that he had also had an extramarital affair with a female executive directly under the company.

The shock from former CEO Hwang's resignation also spread to AI-related technology stocks.

AI server manufacturer Super Micro Computer (-11.30%), semiconductor company Marvell Technology (-2.58%), memory company Micron Technology (-1.59%), and data storage company SanDisk (-4.11%) fell one after another.

CoreWeave (-6.86%) and Nevius (-16.84%), AI cloud companies that have close business relationships with NVIDIA, also suffered large drops.

On the other hand, Nvidia's competitors, AMD and Broadcom, rose 5.86% and 5.54%, respectively, on expectations of a return.

This is interpreted to reflect expectations that customer companies may begin to diversify their semiconductor suppliers as NVIDIA's management uncertainty increases due to former CEO Hwang's resignation.

AMD produces AI semiconductors that directly compete with Nvidia's graphics processing units (GPUs), and Broadcom is participating in the development of customized AI semiconductors for large technology companies such as Google.

Charu Chanana, chief investment strategist at Saxo Bank, analyzed that AMD, Broadcom, Alphabet, and Samsung Electronics could benefit if Nvidia's customers diversify their supply sources.

However, considering the technological superiority and software ecosystem that NVIDIA has built in the AI ​​semiconductor market, some say that it will not be easy for competitors to significantly expand their market share in a short period of time.

Michael Landsberg, Chief Investment Officer (CIO) of Landsberg-Bennett Private Wealth Management, said, "Jensen Huang's resignation is the worst-case scenario that could occur in this situation," and added, "He was not just a manager, but a person who presented the company's vision."

He predicted that further downward pressure on the stock price would continue, saying, “The value of NVIDIA stock included not only semiconductors but also former CEO Hwang’s vision and ability to lead the company.”