Nvidia-backed chip stocks wobble after Huang resigns

Shares of Intel ↘ 1.31%, Marvell Technology ↘ 2.46%, Lumentum Holdings ↘ 4.06% and Coherent ↘ 0.20% fell Thursday, November 12, after Nvidia ↘ 5.25% said Jensen Huang had resigned as president, chief executive and board member, effective immediately. Nvidia has invested in all four companies. Nvidia's announcement named Chief Financial Officer Colette Kress interim CEO and said the board would consider internal and external candidates for a permanent successor. Investors are now asking whether Nvidia will keep backing the partner network Huang built.sec.gov

Selloff fades for Nvidia-backed stocks

Intel dropped sharply early in the session, then recovered most of the loss by late morning, according to Benzinga. Benzinga said the move looked like broad caution across chip stocks, not news specific to Intel. CNBC Comcast Corporation ↗ 0.60% reported that Intel and Marvell were among the stocks Nvidia has invested in that traded lower, along with Synopsys ↗ 0.27%, Coherent and Lumentum. Later in the session, Investopedia said Intel and Marvell had recovered to little changed. Nvidia rivals Broadcom ↗ 5.31% and Advanced Micro Devices ↗ 5.45% both rose.benzinga.com+2

Huang resigned after reports that he had extramarital affairs with a woman U.S. intelligence agencies concluded was spying for China and with an Nvidia executive who reported to him, according to The New York Times ↘ 0.07%. The company also named former Synopsys CEO Harvey Jones as its first board chair, Reuters Thomson Reuters Corporation ↗ 0.83% reported.reuters.com+1

What happens to Nvidia's stakes

Nvidia invested $5 billion in Intel in September 2025, and the two companies agreed to jointly develop data center and PC chips. Based on Intel's Wednesday close of $62.50, that stake is now worth about $13.4 billion, according to Barron's News Corp ↘ 0.97%. Nvidia also put about $2 billion each into Marvell, Coherent and Lumentum to build out its optical-networking supply chain. Barron's reported that Marvell and Lumentum's planned merger was approved by Huang, citing Bloomberg.barrons.com

Barron's said a forced sale of the stakes looks unlikely. Nvidia does not need the cash, and selling Intel shares could draw disapproval from the Trump administration, which sees Intel as a champion of U.S. chipmaking. The bigger risk is that a new leader slows future deals. "While existing contracts will survive a CEO change, what's at risk is the next round of deals, and with it Nvidia's ability to defend its share into 2027 and beyond," William Blair analyst Sebastien Naji wrote in a note cited by Barron's.barrons.com

Earnings next week

Nvidia said it will still report third-quarter fiscal 2027 results on Tuesday, November 17, according to its release. "The Board has full confidence in Colette and the leadership team, and we expect the company's operations, customer commitments and product roadmap to continue without interruption," Jones said in the statement, as quoted by CNBC.cnbc.com+1