Nvidia shares fall as rivals rise

The global technology sector is in flux after Jensen Huang resigned as Nvidia CEO on Thursday. Huang stepped down following reports of extramarital affairs, one of which involved a suspected Chinese spy. He was the public face of a company that dominates the market for chips used to train and run artificial intelligence models.

Nvidia trades off with Apple as the most valuable company on Wall Street. In March, Huang predicted the company would handle a $1 trillion backlog in chip orders by the end of the year. That figure would have doubled his estimate from the previous year. The company has invested heavily in other AI firms and serves as a linchpin for the current technology boom.

Shares of Nvidia’s rivals advanced on Thursday. Broadcom, Intel, and Advanced Micro Devices all saw their stock prices rise. Investors predict that Nvidia customers will look to diversify their suppliers. Bret Greenstein, chief AI officer at West Monroe, said the shift could turn a monopoly into a competitive race. He argued that a more diverse supply chain would strengthen the AI industry in the years ahead.

Nvidia carved out an early lead by tailoring graphics processing units for AI training. Jay Aldebert, chief growth officer of International Services Inc., noted that Nvidia has historically released a better chip whenever a competitor caught up. Chester Spatt, a finance professor at Carnegie Mellon University, said competitor gains will be smaller than Nvidia’s losses. He also said chip purchasers will become reluctant to concentrate purchases with a single source.

The resignation may prompt elected officials to seek stronger export controls on American-made chips. This could benefit Chinese chipmaker Huawei. Lizzi C. Lee, a fellow at the Asia Society Policy Institute, said Chinese AI developers depend heavily on Nvidia’s ecosystem. She noted that this situation presents both an opportunity and a headache for China.

Huang had a large role as an AI evangelist. He advocated for light regulation on AI and maintained close access to President Donald Trump. Asa Hiken, a senior analyst at eMarketer, called the resignation a watershed moment. She said Nvidia now must prove it can maintain its AI dominance without the leader responsible for building it. The departure introduces uncertainty well beyond the company itself.

Nvidia’s circular financing deals are under closer scrutiny. Colette Kress, Nvidia’s CFO turned interim CEO, has been a key force behind the strategy. CoreWeave, which rents out access to Nvidia chips, closed down almost 7% on Thursday. Nvidia holds a nearly 13% stake in CoreWeave. Aldebert described the circular financing practice as incestuous. Experts will watch pending public debuts, including Anthropic’s IPO valued at $1.3 trillion.