NVIDIA Shares Drop 3.6% as Investors Digest CEO Departure, Chip Sector Falls Broadly

Deep News11-13 23:40

NVIDIA CEO Jensen Huang has resigned, and CFO Colette Kress has been appointed as interim CEO. Amid the impact of multiple scandal-related reports, investors are digesting the news, and NVIDIA (NVDA) shares fell more than 3% on Friday.

The stock is expected to close lower this week, with its market capitalization dropping below the $4 trillion mark. Some strategists noted that with a forward P/E of only 13 times and year-over-year revenue growth of 60%, the current valuation appears attractive.

James Demmert, Chief Investment Officer at Main Street Research, said Friday morning: "We believe the stock has support at the $165 level, but market sentiment is currently extremely bearish."

Other chip companies weakened in tandem: AMD shares fell about 9%, Broadcom about 6%, and Intel about 5%.

TSMC, which manufactures chips for NVIDIA, fell more than 3%; semiconductor equipment maker ASML was roughly flat. Memory chip maker SanDisk extended losses from the previous trading session, while memory chip companies such as Micron and SK Hynix also declined.

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