Broadcom shares jump over 5% as Nvidia CEO resigns, sparking AI‑chip alternative rally
Broadcom Inc. stock rose between 4.6% and 5.4% on November 12 after Nvidia announced the immediate resignation of CEO Jensen Huang. Investors see the leadership turmoil as an opening for Broadcom’s custom AI ASICs and noted the company’s participation in Anthropic’s $26 billion share placement, which includes a $1 billion allocation. Nvidia’s shares fell about 5.6% on the same day.
Why it matters
The rally lifts Broadcom’s market price to roughly $363, narrowing its discount to the 52‑week high and may attract investors seeking AI‑chip exposure beyond Nvidia. The move also depresses Nvidia’s stock, reflecting a shift in sentiment toward alternative suppliers.
Key facts
- 1Broadcom shares were up 5.4% at $364.16 during the afternoon session. fool.com
- 2Broadcom’s share price later settled at $362.56, up 4.8% from the prior close. theglobeandmail.com
- 3Broadcom is buying 13,513,513 Class N shares in Anthropic’s placement, valued at approximately $1 billion at a $74 midpoint. invezz.com
- 4Nvidia’s CEO Jensen Huang resigned effective immediately, and CFO Colette Kress will serve as interim CEO. fool.com
- 5Nvidia’s stock fell 5.58% following the resignation announcement. fool.com
- 6Broadcom trades at about 19 times forward earnings. fool.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.