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NVIDIA share price crash: After rising to its peak in mid-2026, NVIDIA's share price touched a new peak of $243.37 per share, and climbed to the record market valuation of $5.80 trillion. At this market valuation, NVIDIA's market cap briefly exceeded the net market value of the entire Indian stock market. The bull run in the stock continued despite short-seller Culper Research warning about the hidden Chinese problem with the AI giant in May 2026. However, the short sellers' warning came true and Jensen Huang resignation post-Chinese spying and other controversies are glaring example of it. In this crisis, NVIDIA's share price crashed over 26% in one month, and its market cap has come close to $4 trillion, recording around 30% wealth erosion from its peak of $5.80 trillion market cap.
Meanwhile, amid NVIDIA stock price crash, some investors may think of switching to other AI stocks like AMD, Brodcom, Micron, etc., as they are the biggest competitors of NVIDIA. In fact, shares of Broadcom and AMD have registered some strong buying interest amid NVIDIA shares.
On whether NVIDIA's leadership crisis after Jensen Huang's resignation, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Investors are increasingly betting that the leadership crisis at Nvidia could create significant opportunities for its closest competitors. AMD could emerge as a potential beneficiary because its Instinct GPUs and AI accelerator roadmap directly compete with Nvidia's data-centre processors.”
Whether some other AI and Semiconductor stocks are expected to benefit from the NVIDI crisis, Sachdeva said, “Broadcom could benefit from the growing preference among major technology companies for custom-designed AI accelerators. Its expertise in custom AI chips and networking infrastructure positions it to benefit from companies looking to develop alternatives to conventional GPU-based AI systems.”
Sugandha Sachdeva of SS WealthStreet believes prolonged leadership uncertainty at Nvidia could accelerate the diversification of AI chip procurement, potentially allowing AMD and Broadcom to capture a larger share of the rapidly expanding AI semiconductor market.
On whether one should switch from NVIDIA and look at other AI and Semiconductor stocks, Sandeep Pandey, Co-founder of Basav Capital, said, “The CEO exit itself is not necessarily the investment thesis. What matters is whether the company’s competitive engine continues after the founder leaves. Historical founder handovers show very wide outcomes.”
Advising investors to look at Apple's transition from Steve Jobs to Tim Cook, Sandeep Pandey said, “Steve Jobs resigned as CEO on 24 August 2011, and Tim Cook immediately became CEO. Jobs remained chairman, so investors knew the transition was orderly. Same thing happened in Microsoft (Gates → Ballmer), Amazon (Bezos → Jassy), Oracle (Ellison → Catz/Hurd), and Alphabet (Page → Pichai).”
In the above-mentioned transitions, some transitions received a poor response, whereas some received a mixed response. In the initial phase, most stocks fell sharply, but they recovered strongly once the transition was complete.
Expecting the NVIDIA crisis to settle down once the new leadership becomes active in full swing, Sandeep Pandey of Basav Capital said, “For the short-term, Broadcome and AMD stocks may benefit from the NVIDIA stock price crash, but in the long-term, NVIDIA is expected to bounceback, as the company is way ahead of these competitors in terms of technology and planning.”
Pandey advised long-term investors to take advantage of this NVIDIA crisis and buy NVIDIA shares, as the company is still world's top AI and Semiconductor company.
31-year old short-seller research organisation Culper Research had taken short position in NVIDIA stocks in May 2026. The Culper Research NVIDIA short selling report said, “Nvidia holds the single largest market capitalization on the planet, while CEO Jensen Huang has been celebrated as a generationally talented operator. We share the consensus view that AI – for better or worse – will continue to transform society. This is not a bet against AI. We are short Nvidia for one reason: the Company has a significant China problem.”
Explaining the China problem for the company, Culper Researh NVIDIA short report added, “Nvidia claims that its business in China went to “zero” after April 2025 U.S. trade restrictions. We believe that in reality, over 20% of Nvidia’s FY 2026 compute revenues remained driven by China – supported both by illegal GPU diversion and Southeast Asian intermediaries.”
According to brokerage firm Vested, Huang's resignation marks a significant leadership transition for Nvidia, particularly because he played a central role in establishing the company's position at the heart of the global AI industry.
The immediate market reaction, including a sharp decline in Nvidia shares, reflects concerns around leadership continuity, corporate governance and the company's future business direction.
However, Vested believes investors should distinguish between leadership uncertainty and the company's underlying business fundamentals.
The appointment of CFO Colette Kress as interim CEO also provides some degree of leadership continuity. However, investors will closely monitor how the company manages the transition and whether it affects product development, customer relationships and its broader AI infrastructure strategy.
Vested further noted that Nvidia could experience continued share price volatility in the near term as investors reassess its valuation and attach a higher risk premium to the stock until there is greater clarity on its leadership succession.
Decoding the technical chart pattern of NVIDIA stocks, Mahesh M Ojha, VP — Research and Business Development, said, “NVIDIA share price has immediate support placed at $154 per share, whereas $148 is acting as the strong support for the AI and Semiconductor stock. On the upper side, NVIDIA stock price is facing resistance at $175. On breaking above this resistance on a decisive basis, NVIDIA stock pirce is expected to come close to $200 per share levels.”
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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