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Nvidia CEO Huang Resigns as AI Chip Selloff Deepens

BY | ETF Database
7:19 am ET 11/12/26 | 5 VIEWS
  • Related Symbols
  • XLK
Nvidia Corp. (NVDA) CEO Jensen Huang resigned Thursday from the chipmaker he co-founded 33 years ago, CNBC reported. Huang built the company into a $4 trillion giant that powered the artificial intelligence boom.Key Takeaways:Jensen Huang stepped down after 33 years, with finance chief Colette Kress named interim CEO during the search. Tech ETFs pared early losses Thursday morning as Nvidia shares dropped after the CEO announcement. Rival chipmakers Broadcom and AMD gained on Nov. 10 even as Nvidia slid, showing how XLK’s holdings can diverge. Shares fell 10% following the announcement, according to CNBC. Chief Financial Officer Colette Kress was named interim CEO while the board searches for a permanent replacement. Board chair Harvey Jones said the company expects its “operations, customer commitments and product roadmap to continue without interruption.” See More: Nvidia Sell-Off Highlights Single-Stock Concentration Risk for Advisors The move followed reports of Huang’s romantic ties to Alice Huang, believed by U.S. intelligence to be a Chinese spy, CNBC reported. Huang has denied compromising national security or Nvidia secrets, and Nvidia’s board hired law firm Wachtell Lipton to investigate. The leadership shake-up at the center of the AI trade lands in a sector that was already sliding. Global chip stocks were in a 20% drawdown before the midterm elections, according to State Street Investment Management. See more: Sector ETFs Split in Midterms Week as Staples Lead Strategists Christine Norton and Chris Carpenter wrote Nov. 6 that heavy AI spending, high earnings expectations and questions about how AI will make money had already raised the bar for gains. The election then added political and regulatory uncertainty that sped up the decline. The Nasdaq Composite fell 5.5% on Nov. 5, compared with a 4.4% drop for the S&P 500, according to State Street. Many chip and data-center stocks fell even further. Washington could add more pressure. Democrats poised to take both chambers of Congress have promised to investigate matters tied to Nvidia, CNBC reported.How Nvidia’s Exit Shows Up in Tech ETFsTech funds felt the drag early Thursday. The State Street Technology Select Sector SPDR ETF (XLK A) was down 0.29% by mid-morning, narrowing a 1.08% loss from earlier in the session, according to state street. The materials fund had the steepest drop of State Street’s 11 sector ETFs at 0.62%, while the energy fund led with a 0.95% gain. Nvidia is XLK’s second largest holding at 13.19%, followed closely by Microsoft Corp. (MSFT) at 12.77%, State Street data shows. Apple (AAPL) led the fund at 16.33. Owning Nvidia alongside its rivals cut both ways for the 76-stock fund on Tuesday. Nvidia fell 5.5% that day and XLK dipped 1.15%. Broadcom Inc. (AVGO) rose 3.9%, however, and Advanced Micro Devices, Inc. (AMD) gained 1.3%, according to the tracker. Still, State Street’s strategists argued that the market reaction overstates how much the election changes AI’s long-term path. AI remains a priority for both parties, they noted, and a Democratic Congress alone likely couldn’t curb the buildout against a presidential veto. They also suggested looking past the most crowded AI stocks, since focus may shift from AI builders to AI users. Nvidia sits at the heart of that trade. Even with the recent pullback, its stock is up about 14-fold since OpenAI released ChatGPT in late 2022, CNBC reported. For more news, information, and analysis, visit our Sector Investing Content Hub.

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