What happened?

A number of stocks fell in the morning session after Nvidia announced Chief Executive Jensen Huang resigned, deepening anxiety across the artificial-intelligence supply chain. Nvidia announced Huang stepped down after 33 years, naming Chief Financial Officer Colette Kress interim CEO, CNBC reported. 

Huang's departure follows an emergency board review prompted by disclosures of two extramarital relationships, one of which was with a direct report, CNBC and The New York Times reported.

Adding sector pressure, cloud vendor Nebius tumbled roughly 16% on disappointing guidance, while higher crude prices and climbing Treasury yields weighed on tech multiples, CNBC reported. 

According to CNBC, analysts warned that Huang's exit clouds memory and lithography order timelines for suppliers like Micron and ASML. A sudden leadership change at Nvidia could create unpredictability for ecosystem partners and portfolio investments that depend on strategic alignment with the company.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Semiconductor manufacturing company FormFactor fell 5%. Is now the time to buy FormFactor? Access our full analysis report here, it’s free.
• Semiconductor manufacturing company Amkor fell 4.2%. Is now the time to buy Amkor? Access our full analysis report here, it’s free.
• Semiconductor manufacturing company Kulicke and Soffa fell 4%. Is now the time to buy Kulicke and Soffa? Access our full analysis report here, it’s free.
• Semiconductor manufacturing company Applied Optoelectronics fell 7.2%.

Zooming in on Applied Optoelectronics

Applied Optoelectronics’s shares are extremely volatile and have had 137 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Applied Optoelectronics is up 33.1% since the beginning of the year, but at $52.73 per share, it is still trading 76.4% below its 52-week high of $223.10 from May 2026. Investors who bought $1,000 worth of Applied Optoelectronics’s shares 5 years ago would now be looking at an investment worth $8,672.

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