Apple stock was up 0.20% overnight at the time of writing, while Alphabet’s stock gained 0.26%.
- Nvidia’s shares plunged overnight amid reports that the board is looking to replace CEO Jensen Huang.
- Retail investors highlighted a rotation out of Nvidia and into Apple and Alphabet amid the ongoing uncertainty around the chipmaker’s leadership trajectory.
- Meanwhile, Dan Niles, founder of Niles Investment Management, implored markets to focus on considering whether Nvidia’s prices will have topped at current levels.
Shares of Apple Inc. (AAPL) and Alphabet Inc. (GOOG) edged higher in the overnight session, even as Nvidia Corp.’s (NVDA) shares plunged amid reports that the board is looking to replace CEO Jensen Huang amid fresh news of an infidelity incident with a company executive.
The developments have fueled speculation among retail investors on Stocktwits about whether investors could eye a rotation out of the AI darling’s stock and into more traditional technology shares, including Apple and Alphabet.
Markets Are Rotating Out Of Nvidia And Into Apple, Google
AAPL stock was up 0.20% overnight at the time of writing, while GOOG stock gained 0.26%. Meanwhile, NVDA stock plunged more than 8% in extended trading hours.
Retail investors highlighted a rotation out of Nvidia and into Apple and Alphabet amid the ongoing uncertainty around the chipmaker’s leadership trajectory.
One user said, “$AAPL all the Nvida money coming to Apple.”
Another user said, “$AAPL i think im just going to wait for aapl earnings report. at least john ternus can control himself around chinese spies.”
Apple’s stock price surged to an all-time high on Wednesday amid the Nvidia scandal, building on an earlier rotation out of AI companies and into more traditional technology stocks after a Democratic win in the two chambers of Congress raised concerns about a slowdown in the industry.
Meanwhile, a user said about Alphabet, “$GOOG This scandal at Nvidia should be positive for Google.”
Another user said, “$GOOG buy and sell $NVDA.”
Dan Niles Compares Huang’s Potential Exit To Apple’s Steve Jobs Transition
Meanwhile, Dan Niles, founder of Niles Investment Management, drew a comparison between CEO Jensen Huang’s potential ouster from Nvidia to Apple’s performance after Steve Jobs’ departure from the company in 2011 due to health complications.
In a post on X, he implored markets to focus on considering whether Nvidia’s prices will have topped at current levels.
“There are 40K employees at Nvidia and Jensen was a generational CEO but the pipeline of products I believe will sustain the company for ~2 years. There is a deep bench of direct reports. The analogy I would give is Steve Jobs took his medical leave in Jan-2011 and sadly died in October,” Niles said.
He noted that AAPL stock rose 26% in 2011 to 2012 compared to a more nominal rise in the S&P 500 and the Nasdaq as its revenue surged.
“It took till year 3 for Apple revenue growth to slow dramatically to <10% in FY13 and then the stock massively underperformed that year. For the AI trade and Nvidia’s stock, the bigger question for me remains the same. Was June 22nd the top in the AI trade overall?” he questioned, before adding that he believes the company’s Agentic AI just started this year and is likely to keep the stock elevated.
“Agentic requires 10-100x more tokens. But time will tell if that was THE TOP.”
Other Tech Names Also Gain From Nvidia’s Loss
Amidst NVDA’s drop, Advanced Micro Devices Inc. (AMD) jumped more than 7% at close and gained over 1.5% overnight. Broadcom Inc. (AVGO), Marvell Technology Inc. (MRVL), and Intel Corp. (INTC) also gained at close.
The iShares Semiconductor ETF (SOXX) was up 6% at close, while the VanEck Semiconductor ETF (SMH) gained nearly 5% and the Vanguard Information Technology ETF (VGT) was up nearly 3%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<