Jensen Huang Exits Nvidia as Wall Street Bets AI Boom Endures

IT之家 November 14 news, according to Bloomberg's report on the 13th, Wall Street is not too worried about how much impact Jensen Huang's departure as NVIDIA CEO would have on the AI investment boom.

After the market opened on the 12th local time, NVIDIA's stock price plunged as much as 14%, dragging down other AI-related stocks. But as investors refocused on the long-term demand of the AI industry and began looking for companies that might benefit from the turmoil, the selloff quickly eased. NVIDIA ultimately closed down 4.3%.

Steve Sosnick, chief strategist at Interactive Brokers, pointed out: "What the market cares about is not assessing risk, but finding opportunities. Investors are thinking: 'If NVIDIA gives up market share, who will benefit?'"

Broadcom and AMD shares surged accordingly, becoming the stocks that contributed the most points to the S&P 500 index. Investors believe the two companies are expected to compete for business that NVIDIA may lose due to the turmoil.

The Philadelphia Semiconductor Index fell as much as 3.7% at the open, but then recovered most of its losses and closed down only 0.5%.

Patrick Moorhead, CEO and chief analyst at Moor Insights & Strategy, believes: "In the short and medium term, I don't think this will change the AI investment landscape. Broadcom, Intel, and numerous startups are all capable of filling much of the market gap that NVIDIA may leave behind."

According to IT之家, in recent weeks, the market has been worried about whether the massive investments in the AI sector can be sustained in the long term, putting pressure on AI-related stocks. The results of the U.S. midterm elections also dampened the enthusiasm of some investors, as many state and local candidates opposed to building data centers locally won their elections.

However, Wall Street figures pointed out that large AI cloud service providers have promised to maintain large-scale investment through 2027, which can provide short-term support for the AI sector. With its performance-leading chip products, NVIDIA became one of the earliest beneficiaries of the AI boom, and Jensen Huang also played an important role in promoting infrastructure construction and facilitating business cooperation.

But the development of the AI industry has long ceased to depend on NVIDIA alone.

Angelo Zino, senior vice president and head of technology research at CFRA, mentioned that recent financial reports released by AI companies show that market demand remains strong. "The AI industry has developed to this day, and it is long past the initial stage. I don't think Jensen Huang's departure can change all of this."

The uncertainty that Jensen Huang's departure brings to NVIDIA's future still cannot be ignored. He previously invested NVIDIA's profits in dozens of companies across the AI industry chain, forming complex circular investment relationships. With Jensen Huang's departure, some of these companies may be affected.

These concerns caused AI cloud service providers Nebius and CoreWeave to be sold off by investors at one point, and server manufacturer Supermicro also saw its stock plunge 11% due to another piece of news.

Brian Colello, equity strategist at Morningstar Investment Services, pointed out: "If Jensen Huang had worked with some small companies, provided support, or even invested directly, allowing them to benefit from his endorsement, then that advantage will also disappear with his departure."

Colello believes that Jensen Huang has long been a representative figure of the AI industry and a highly respected technology promoter, and the AI industry will to some extent lose a leading figure who champions technological development and promotes the advantages of AI. "NVIDIA's new CEO will also need to take on this work, and this is just one of many responsibilities."

Nancy Tengler, chief investment officer at Laffer Tengler Investments, believes: "I have learned one thing over the years: no one is irreplaceable. I don't think this will have a significant impact on the entire AI investment market. For NVIDIA shareholders, this is just an unfortunate minor episode."

Alan Bond, managing director and portfolio manager at Jensen Investment Management, pointed out: "AI is a transformative technology, and that will not change. There are still many uncertainties in AI's development, but one thing is very clear: AI requires extremely massive and costly computing power. We believe this round of infrastructure construction boom will continue."