The tug-of-war between rallies after sell-offs will continue this morning. Last night, The New York Times reported that NVIDIA (NVDA) CEO Jensen Huang had an inappropriate relationship with staff. NVDA stock fell by around 9% in after-hours trading.
Markets will flock to the companies that benefit from NVIDIA losing its competitive edge. Shares of Advanced Micro Devices (AMD) and Broadcom (AVGO) are poised to benefit when customers seek alternatives to NVIDIA chips. That is a fallback plan in case a shaken management team fails to win new chip deals with customers.
Watch for CoreWeave (CRWV) to follow through from Wednesday’s strong performance. The neocloud provider gained nearly 25% after it posted Q3 results. It raised prices of its products by around 25% in July, then hiked prices by 10% more in Q3. Price hikes will offset cost increases.
The company is forecasting profitability in the first half of FY 2028.
Unfortunately, the drop in NVDA stock will hurt CRWV in the near term. Nvidia is a big investor in the company.
Watch the stronger neocloud firm, Nebius (NBIS) today. Shares failed to hold the $250 level, which it has tested often since May. Its quarterly report today might give shareholders renewed confidence. The firm has a strong future buildout. Additionally, a solid financing plan along with higher pricing for its products should lift its earnings.
