Broadcom shares rise 4.6% as Nvidia CEO exit boosts alternative chip demand
Broadcom shares rose 4.6% on Thursday as investors weighed the impact of Nvidia CEO Jensen Huang's resignation on the AI sector, potentially boosting demand for alternative chip suppliers. The stock gain followed Nvidia's board confirming Huang's departure, raising questions about whether hyperscalers designing custom chips might rely more on Broadcom during the leadership transition. Analysts at Bank of America, JPMorgan, and Barclays maintained buy ratings, with price targets up to $500. Broadcom also appears in Anthropic's amended S-1 filing as a $1 billion buyer in a $26 billion share placement. Fundstrat's Tom Lee reiterated that tech stocks bottomed last week, viewing Nvidia's turmoil as company-specific rather than systemic to AI investment.