Nvidia’s leadership turmoil is boosting potential beneficiaries, with Advanced Micro Devices, Broadcom and Alphabet gaining after hours on bets they may win business from the chip giant.
AMD and Broadcom each rose more than 3% as Nvidia sank 9% after hours on reports its board is preparing to oust Chief Executive Officer Jensen Huang, who led its rise to become, at one point, the world’s most valuable company. Alphabet rose 0.3% in extended trading.
The selloff followed reports about Huang’s extramarital affairs and intensified after the Wall Street Journal said the board was preparing to remove him. Nvidia is working with an outside firm to identify potential replacements for Huang.
As Nvidia confronts leadership uncertainty, rival hardware makers are gaining as investors seek continued exposure to the AI trade while hedging Nvidia-related risks.
The turmoil underscores the potential for further volatility as investors assess its impact on AI development and
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