The Bank of Nvidia just lost its banker — here’s where the AI trade is exposed
Jensen Huang did Wall Street is recalibrating valuations across his entire portfolio.
Huang stepped down as Nvidia’s (NVDA) CEO and departed the board on Thursday, effective immediately, following reports of three affairs, including one involving an alleged Chinese spy. CFO Colette Kress has assumed the role of interim CEO, and the firm maintains its schedule to release earnings on Tuesday.
Nvidia shares tumbled to their lowest point in over a year, briefly shedding $2 trillion from their October peak, before recovering to close with a 4% loss. However, the market reaction has been inconsistent across the AI sector. Cloud providers that lease Nvidia hardware, such as Nebius (NBIS) and CoreWeave (CRWV), suffered the most significant declines, whereas competitors like Broadcom (AVGO) and AMD (AMD) each climbed <a Bank of Nvidia."
Nvidia and its portfolio companies declined following Jensen Huang’s resignation, while competitors and the majority of Big Tech stocks remained stable.
Nvidia holds equity in Intel (INTC), SpaceX (SPCX), CoreWeave, Coherent (COHR), and Safe Superintelligence. The company also purchased $3 billion of Meta’s (META) stock offering and has committed up to $10 billion to Anthropic ahead of its upcoming IPO next week. Furthermore, it maintains a $30 billion position in OpenAI and has reached a preliminary agreement to invest as much as $100 billion more. Many of these entities, in turn, utilize their capital to purchase Nvidia’s chips.
