Nvidia Board Reportedly Weighs Removing CEO Jensen Huang
TREE NEWS reports: Nvidia’s board of directors convened an internal meeting on Wednesday to decide the fate of founder and CEO Jensen Huang, and has reportedly engaged external firms to identify candidates for a new chief executive, including the possibility of appointing an interim CEO. The news, which also included a report of a personal scandal involving Huang, sent Nvidia shares down as much as 9% in after-hours trading. On prediction market Polymarket, the probability of Huang departing before November 30 surged to 86%.
Chinese GPU Makers Rally, Sci-Tech 50 Jumps Over 2%
The turmoil at Nvidia triggered a sharp rally in Chinese GPU and AI chip stocks, as investors bet on domestic alternatives. The STAR 50 index, which tracks Shanghai’s tech-heavy STAR Market, rose more than 2% after earlier climbing nearly 5%. Cambricon Technologies surged nearly 10%, reclaiming the 1,000 yuan per share level, while Enflame Technology jumped over 12% to a record high, extending a seven-day gain of more than 80%. Other names such as Moore Threads, Muxi, and Shengke Communication also posted strong gains.
The semiconductor supply chain strengthened across the board, with semiconductor equipment up 3.02%, integrated circuit manufacturing up 2.42%, packaging and testing up 2.37%, and semiconductor materials up 2.16%. Memory chip concept stocks also rose, though more modestly, as overnight gains in US memory names like SanDisk and Micron provided some support.
Hong Kong Tech Stocks Slide; Alibaba Drops 5%
In contrast, Hong Kong’s tech-heavy Hang Seng Tech Index fell over 1%, with Alibaba dropping 5% to lead losses. JD.com, Kuaishou, and Bilibili also declined. The divergence highlights a rotation within the tech sector, as investors favor hardware and chip names over internet platforms amid the AI infrastructure boom.
Market Implications: A Reassessment of AI Leadership
The potential departure of Jensen Huang, the face of the AI revolution, raises questions about Nvidia’s strategic direction and execution. While the company’s technology and market position remain strong, leadership uncertainty could weigh on near-term sentiment. For Chinese GPU makers, the news reinforces the narrative of domestic substitution and self-sufficiency in AI chips, driving strong buying interest. However, investors should note that Chinese GPU firms still lag in performance and ecosystem maturity, and the rally may be driven more by sentiment than fundamentals.
In the broader market, A-share turnover surged, with combined Shanghai and Shenzhen volume reaching 1.22 trillion yuan in the morning session, up 290 billion yuan from the previous day. The bond market was mixed, with government bond futures mostly lower, while commodity futures were largely down, led by declines in coking coal and gold.
Key Takeaways for Investors
- Leadership risk at Nvidia: Monitor board decisions and any official announcements. A leadership change could create volatility in AI-related stocks globally.
- Chinese GPU theme: The rally in Cambricon, Enflame, and others reflects growing optimism over domestic AI chips, but valuations may be stretched. Focus on companies with tangible product progress and government backing.
- Sector rotation: The divergence between Hong Kong internet stocks and mainland hardware names suggests a rotation within tech. Consider exposure to AI infrastructure over platform companies in the near term.
- Macro factors: Keep an eye on US-China tech tensions and any policy responses, as they could amplify moves in semiconductor stocks.
