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Nvidia (NVDA) stock sank as much as 10% Thursday morning after CEO Jensen Huang resigned and the company board named CFO Colette Kress as interim chief executive officer.
Shares of Nvidia direct rivals jumped. Broadcom (AVGO) and AMD (AMD) gained on bets that its troubles could send more chip business their way. AMD (AMD) stock rose more than 3% while Broadcom (AVGO) edged higher. The stocks extended gains following a jump on Wednesday.
Sentiment around the rest of the AI trade however soured, particularly among companies in which Nvidia has invested.
Shares of Nvidia-backed neocloud provider CoreWeave (CRWV) dropped 14% in pre-market trading on Thursday, giving back some of the prior session’s gains sparked by a strong quarterly print. Peer Nebius (NBIS) also sank 20%.
Meanwhile, shares of Taiwan Semiconductor Manufacturing Company (TSM), which manufactures Nvidia chips, also fell more than 4%. Semiconductor equipment maker ASML (ASML) slipped into red territory.
Storage maker Sandisk (SNDK) dropped 5% in pre-market trading, and memory chipmakers Micron Technology (MU) and SK Hynix (SKHY) declined roughly 4%.
Intel (INTC) stock dropped 4%, Nvidia is an investor in the US-based chip maker.
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