Nvidia's leadership crisis is creating an opening for its biggest rivals as well as partners, as investors bet that Jensen Huang's departure could loosen the AI chip giant's grip on an industry it has long dominated. From AMD to Broadcom and even partner TSMC, chipmakers are emerging as potential beneficiaries of the upheaval, with market watchers pointing to a possible redistribution of manufacturing capacity and a narrowing of Nvidia's technological lead.

The shift comes as Nvidia grapples with the fallout from Huang's resignation, following revelations about his multiple affairs, including with a woman believed by the U.S. intelligence community to be a Chinese spy. Mark Franklin, head of multi-asset solutions for Asia at Manulife Investment Management, said investors were rotating into other advanced chip design companies on the assumption that this would help them catch up, and that the rotation was already fuelling positive momentum in other semiconductor stocks. Farzin Azam, managing director of equities trading at Mizuho Americas, said the move was evident on trading desks, with investors favouring chipmakers without a management overhang, naming TSMC, Broadcom and Advanced Micro Devices as likely winners.S1S2

Nvidia shares have plunged 11% so far this week, while AMD and Broadcom have gained 30% and 24%, respectively. TSMC, which manufactures Nvidia's most advanced processors, has rallied 11% over the same period, positioning it as a relatively safer play that stands to benefit regardless of which chip designer gains or loses. The rotation has also extended into analog chipmakers including Texas Instruments, Analog Devices and Infineon, which have climbed about 13%, 12% and 14%, respectively, as investors adopt a more defensive stance.S1S2

Beyond the immediate market reaction, Huang's exit could fundamentally reshape competition across the AI supply chain, according to Dylan Patel, chief executive at semiconductor research firm SemiAnalysis. Patel said Huang had personally cultivated relationships with manufacturers and component suppliers, helping Nvidia secure scarce production capacity ahead of rivals, an advantage that could now come under pressure as Google and Amazon expand their AI chip production. The two hyperscalers were already gaining ground in securing supply-chain capacity relative to Nvidia.S1S2