Micron falls 1.59% to $798.44 amid chip-stock volatility after Huang’s departure

Key Facts

Micron shares closed down 1.59% at $798.44 on the November 12 session, falling $12.86 from the previous close of $811.30, according to Barchart data hosted by Raymond James. The decline came on a day when Nvidia announced the immediate resignation of its CEO, Jensen Huang, but the timing does not prove the decision caused Micron’s drop. The Associated Press reported that Micron sells computer memory and has benefited from strong demand tied to artificial intelligence. Chip stocks moved unevenly during the session as major U.S. stock indexes declined. Attention focused on the leadership transition at Nvidia and what it could mean for continuity in the company’s AI strategy.

Micron shares traded between $764.57 and $799.70 during the session, ending near the top of their daily range. Closing data put the loss at $12.86 per share, compared with the November 11 close of $811.30. The Associated Press estimated the daily decline at about 1.6%, broadly consistent with the 1.59% recorded in market data. Across the chip sector, Reuters reported that Intel, Marvell Technology and Micron fell between 2.8% and 4.2% in Thursday trading. By contrast, AMD and Broadcom rose 4.3% and 5.5%, respectively, showing that the sector’s stocks did not move in one direction.

Pressure on Micron coincided with a 1.3% decline in the Philadelphia Semiconductor Index, according to Reuters, while the three major U.S. indexes closed with modest losses. The Associated Press said the S&P 500, Dow Jones and Nasdaq each fell 0.4% in Thursday’s session. Nvidia shares, meanwhile, fell 14% at the start of trading after Huang’s resignation was announced, then pared some losses to close down 4.3%. The agency said the company’s shares recovered some of their early losses before the close. These figures show that the announcement hit Nvidia harder at the start of the session, while the broader market ended the day with milder declines.

Nvidia announced that Huang left the CEO post on Thursday, effective immediately, and that CFO and Executive Vice President Colette Kress would serve temporarily. The company said it was considering internal and external candidates for the permanent CEO role, without naming a permanent successor at the time. The board also announced the appointment of Harvey C. Jones as the company’s first chairman. The steps put the leadership transition at the center of investor attention, with executive management temporarily in new hands and the search for a permanent CEO still open. The company did not provide a timeline for a final decision on the role in this information.

Huang’s departure carries particular significance given his long tenure at Nvidia: he co-founded the company in 1993 and led it continuously until his resignation, according to the Associated Press. Kathleen Brooks, research director at XTB, told Reuters that his departure adds uncertainty to AI trading, adding: "There is no longer anyone promoting AI in the same way Jensen Huang did." The Associated Press described his departure as a pivotal moment for the company and quoted eMarketer analyst Asa Hiken as saying Nvidia would have to prove it could maintain its position in AI without him. That challenge follows a 1,722% rise in the company’s shares over four years through an October record peak, compared with a gain of nearly 109% for the S&P 500 over the same period. The shares had fallen 27% from their October peak through November 11, before the session in which his resignation was announced.

Nvidia said it saw no reason to believe national security or company secrets had been compromised and that its investigation would examine the information available. On economic data, Reuters reported that investors were preparing for the U.S. Producer Price Index due Friday, which could affect their inflation expectations. Market watchers were therefore weighing the fallout from Nvidia’s leadership transition alongside the upcoming price reading. For the company, the next announced step is to continue considering internal and external candidates for the permanent CEO role. The available information did not specify when the selection would be completed.