Micron shares fell as Nvidia CEO Jensen Huang resigned, even though the two companies make different chips. Micron sells memory chips that pair with Nvidia's GPUs in data centers, which is why the Motley Fool links the two stocks.
Micron Technology shares fell between 5% and 5.8% as investors reacted to Jensen Huang's sudden resignation from Nvidia. The memory maker dropped with the broader semiconductor sector, even though it does not make the graphics processors Nvidia is known for.
Why a Nvidia exit hits a memory maker
The Motley Fool put Micron's decline at 4.8% through 10:15 a.m. ET on Thursday. Its author argues that Huang's departure raises the risk that the AI industry loses momentum, and that slower AI chip sales would also hurt Micron.
The link runs through data centers. According to the Motley Fool, one of Micron's biggest revenue streams is selling memory chips to data centers, where they are paired with Nvidia GPUs.
A risk, not a certainty
Crypto Briefing describes the selloff as looking like contagion rather than company-specific bad news for Micron and other chip names. The Motley Fool makes a similar point: a risk is not a certainty, and Intel, Arm, Google and Amazon could pick up the slack in AI chips.
The Motley Fool analyst also notes that Micron is trading below 5x earnings and says Micron stock is more likely to go up than down over time. That is one analyst's opinion, not a forecast.
What happens at Nvidia next
Nvidia named chief financial officer Colette Kress interim CEO, and she keeps her finance responsibilities. The board also named Harvey C. Jones as chair, and a search for a permanent successor is underway with no timeline given.
Crypto Briefing lists three signals to track: who Nvidia picks as its permanent CEO, whether Kress shifts strategy during her interim stint, and how Jones shapes the new board structure.
Sources: Crypto Briefing, Fool
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