Chinese AI model and US-facing data-centre supplier shares fell on 13 November while chipmaker Cambricon Technology gained 1.2%, Reuters reported from Shanghai. The split followed Nvidia’s announcement on 12 November that Jensen Huang had resigned as chief executive and board member and that Harvey C. Jones had been appointed its first board chair.
Key points
- Z.AI, MiniMax Group and two data-centre suppliers to US markets fell, while domestic chipmakers gained.
- Cambricon rose 1.2% and was on course for a 22% weekly gain. The Shanghai Composite and CSI300 were little changed at lunch.
- Nvidia shares closed down 4.34% on 12 November, after falling as much as 14% during the session.
- Colette Kress is serving as interim chief executive while remaining Nvidia’s chief financial officer.
Model developers fall as Cambricon gains
AI model companies Z.AI and MiniMax Group fell sharply amid investor concerns about access to advanced chips. Zhongji Innolight and Eoptolink Technology, data-centre suppliers whose businesses Reuters described as heavily reliant on US markets, also slumped. The Shanghai Composite Index and CSI300 Index were little changed by the lunch break.
Cambricon, a Shanghai-listed AI chipmaker, was on course to gain 22% for the week. Hygon Information Technology, another domestic chipmaker, was poised for a 7% weekly gain. The gains came as investors bought local chip shares on expectations of greater demand for domestic technology, Reuters reported.
Wu Zhou, a fund manager at Shenzhen Deyuan Investment, attributed the supplier sell-off to fears that Nvidia would buy less from Chinese companies following Huang’s departure. He also expected tighter US limits on Chinese access to advanced chips and computing capacity rented outside China. In his assessment, that prospect would hurt AI companies needing computing power and benefit domestic chipmakers.
Chelsey Tam, a senior equity analyst at Morningstar, said companies with large language model businesses would be negatively affected if the US tightened Chinese access to its chips. Chinese AI companies were also seeking Nvidia-powered computing capacity outside China, Reuters reported.
Nvidia closes 4.34% lower
Nvidia shares closed 4.34% lower on 12 November, recovering from an intraday fall of as much as 14%, CNBC reported. The company’s market value finished above $4 trillion after trading below that level for much of the session. Shares had fallen more than 10% in pre-market trading, National Herald reported.
Bernstein cut its Nvidia share-price target from $400 to $200 on 12 November, CNBC reported. Huang co-founded Nvidia in 1993 and had been central to its shift from gaming hardware towards AI chips. AI Affairs previously reported Huang’s resignation and Kress’s interim appointment, while Samsung and SK hynix assessed succession risks for chip supply.
Jones takes Nvidia’s first board chair
Jones, a former chief executive and executive chairman of Synopsys, became Nvidia’s first board chair under the 12 November announcement. Nvidia named Colette Kress interim chief executive and said she would retain her roles as executive vice-president and chief financial officer while the board searched for a permanent successor. The search will consider candidates from inside and outside the company.
Kress has led Nvidia’s finance organisation since joining in September 2013. Jones said the board expected operations, customer commitments and the product roadmap to continue without interruption under her interim leadership. Kress said she would keep the company focused on its customers, partners, developers and shareholders.
Nvidia will report its third-quarter fiscal 2027 results on 17 November at approximately 1:20 p.m. PT, followed by an earnings call at 2 p.m. PT.
