Nvidia’s turmoil is prompting a rotation across chip stocks. Here’s what we know

Investors are shifting towards Nvidia’s rivals after the company’s leadership turmoil, betting that competitors may gain ground in the AI chip market. Analysts say uncertainty over Jensen Huang’s departure could weaken Nvidia’s advantage and redirect investment and manufacturing capacity across the industry.

Nvidia shares have fallen 11% this week, while AMD rose 30%, Broadcom 24% and TSMC 11%. TSMC makes Nvidia’s most advanced processors and may benefit whichever chip designer pulls ahead. The shift has also lifted more defensive chipmakers: Texas Instruments gained about 13%, Analog Devices 12% and Infineon 14%.