Nvidia Drops 4.34% After Jensen Huang Resigns; AMD, Broadcom Jump

Retail Investors Buy Nvidia on the Dip

AMD, Broadcom Gain More Than 5%

Nvidia shares fell more than 4% after news broke that Chief Executive Officer Jensen Huang had resigned. The selloff pulled major U.S. stock indexes lower. Still, much of the early shock faded as retail investors bought the dip in Nvidia and rival chipmakers rallied.

On Nov. 12, the Dow Jones Industrial Average closed down 189.40 points, or 0.36%, at 52,297.09. The S&P 500 fell 26.98 points, or 0.35%, to 7,592.40. The Nasdaq Composite dropped 100.10 points, or 0.39%, to 25,366.09.

Nvidia opened down 13.08%. Concerns about a leadership vacuum unleashed a wave of selling after Huang, who had led the company since its founding, stepped down. Buyers later moved in and trimmed the losses, but the stock still finished 4.34% lower.

Nvidia's board announced that Huang resigned effective immediately as president, chief executive officer and director. Chief Financial Officer Colette Kress will serve as interim CEO until a permanent successor is named. The board has started a search for candidates from inside and outside the company.

Retail investors moved quickly to buy the selloff. Vanda Research said net retail purchases of Nvidia totaled about $111 million in the first 30 minutes after the opening bell. That was the largest 30-minute net buying total for the stock immediately after the open on record.

Mark Hackett, chief market strategist at Nationwide Financial, said investors were drawn in by memories of profits from buying past sharp pullbacks. He described it as a stock-specific move in an otherwise healthy market.

Advanced Micro Devices, one of Nvidia's rivals, rose 5.9%, while Broadcom gained 5.5%. By contrast, CoreWeave, which provides AI computing services using Nvidia chips, fell 6.9%, and Micron Technology slipped 1.6%.

Higher oil prices also weighed on equities. After President Donald Trump said an agreement with Iran was unnecessary, Brent crude rose 3.3% to $95.82 a barrel. Exxon Mobil and Marathon Petroleum climbed 1.8% and 2.5%, respectively.

The yield on the 10-year U.S. Treasury note rose to 5.12%. That was up 0.14 percentage point from 4.98% on Nov. 10, before the bond market closed for Veterans Day.

Nvidia will still proceed with its earnings release and conference call scheduled for Nov. 17 despite the management change. At its first earnings briefing since the founder's departure, the company is set to explain its business outlook and future management direction.