Broadcom Rises 5.54% as Nvidia Falls After Huang Resigns as Company Leader
Key Facts
Broadcom shares rose 5.54% at Thursday, November 12, close, in a session when Nvidia shares fell after Jensen Huang announced his resignation as the company's chief executive and from its board, according to market data cited by Reuters. Broadcom and AMD shares had risen about 6% during the session, while Nvidia fell about 4.8% after paring some of its early losses. The shift in share performance followed Nvidia's announcement that Huang's departure took effect immediately. The rise of its rivals thus coincided with a fall in the stock that led the artificial intelligence chip boom. The main U.S. indexes closed down about 0.4% each, with the S&P 500, Nasdaq and Dow all lower.
Nvidia's decline was steeper early in the session, with the stock falling about 12% before partially recovering, according to Reuters coverage. The Associated Press estimated it was down about 5% by midday Thursday, after a sharp earlier drop. The move shows that the stock's losses narrowed during trading, even as it remained below the previous session's close. Broadcom, by contrast, ended the day with a larger gain than the roughly 6% rise it recorded during the session, according to the Reuters report. AMD also rose about 6% during the session, the same report said.
Nvidia said Huang had resigned from his roles as chairman, chief executive and board member, effective immediately on Thursday. Chief Financial Officer Colette Kress became interim chief executive as the company searched for a permanent successor from inside or outside the company, according to the Associated Press. The company said Kress would lead on an interim basis as the process to select Huang's successor began. The board also appointed Harvey C. Jones as Nvidia's first chairman, the news agency reported. The changes place the executive leadership and board in a simultaneous transition at a company central to the chip industry.
Huang owns a 3.61% stake in Nvidia and was its fourth-largest shareholder, Reuters reported; he will also leave the board. His departure follows a roughly 900% rise in the company's stock over the four years since ChatGPT launched, according to a Reuters report on investor concerns about the artificial intelligence trade's reliance on Huang and his support for the sector. Reuters described his departure as potentially having broad implications for U.S. chip export policy and the wider artificial intelligence ecosystem. The report linked its significance to Huang's advocacy for access to the Chinese market and his ties to President Donald Trump. This context places the leadership transition at Nvidia within a debate extending beyond company management to export policy and the sector.
Nvidia is due to report third-quarter fiscal 2027 results on November 17, following the quarter's end on October 25, 2026, according to the company. It will hold an earnings call that day to discuss the quarter's performance, according to an investor relations statement. This will be followed by an employee meeting set by Kress for November 18, according to a memo cited by Reuters. The upcoming dates put the company's results and internal meeting directly after the sudden leadership transition. Broadcom has set December 9 to report fourth-quarter and fiscal 2026 results.
Broadcom had forecast revenue of about $34.8 billion in the fourth quarter of fiscal 2026, up 93% from the year-earlier period, according to a company statement. The forecast provides context for its share performance on Thursday, but dates to an earlier announcement and does not by itself explain the stock's move that day. The market is now awaiting Nvidia's results on November 17, the first scheduled financial milestone after the resignation announcement. Nvidia will then hold its employee meeting on November 18, before Broadcom reports results on December 9. These upcoming dates bring together a test of Nvidia's results and a watch on its interim leadership, followed by Broadcom's update on its outlook and financial performance.