- Nvidia CEO Jensen Huang resigned amid a selloff and personal scandal involving national security concerns
- Analysts see opportunity for AMD, Broadcom, and TSMC to capture Nvidia’s market share in chip manufacturing
- Nvidia shares fell 11% in the week but showed a 1.78% rebound in pre-market trading on Friday
With Nvidia's extensive selloff amid the resignation of its chief executive officer Jensen Huang has created a likely opportunity for firms such as Advanced Micro Devices (AMD), Broadcom and the firm's partner TSMC an opportunity to capture some of its market share, according to reports citing analysts on Friday.
As per a CNBC report, analysts stated that these companies could divide the manufacturing capacity requirements between each other and decreasing the distance between it and Nvidia when it comes to being one of the top firms in the chip-making industry.
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Nividia's shares saw a rebound with the shares trading at a 1.78% uptick to $169.14 in pre-market trade. Selling pressure intensified this week, with Nvidia shares falling 4.34% on Thursday to close at $166.19 on the Nasdaq. The decline took the stock's weekly losses to approximately 11%. However, the shares showed signs of a recovery in pre-market trading on Friday, rising 2.24%, or $3.72, to $169.91.
AMD shares were initially down 2.6%, while Broadcom declined 2.8% and shares of Intel declined 0.49% to $60.91, before the opening bell.
Huang's resignation and the continued downturn of the firm's stock follows the reports of his affair with Alice Huang, an alleged to be a spy for the Chinese government as per US authorities, with Jensen Huang confirming the infidelity.
He added that the firm would undertake an independent investigation to determine wether US national security or the company's confidential information had been compromised.
" I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.....Regarding the national security concerns raised in news reports, NVIDIA's Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting NVIDIA and supporting America's national security. I am proud and grateful to be an American," he wrote in an e-mail.
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The board has initiated the search for a permanent Chief Executive Officer and will evaluate both internal and external candidates, the chipmaker said in a statement on Thursday.
The company also appointed Harvey C. Jones as its first-ever Chairman of the Board. Jones brings more than three decades of experience as an entrepreneur, technology executive and venture investor, and previously served as CEO and Executive Chairman of Synopsys.
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