Nvidia's board of directors has offered the CEO position to Rene Haas, the head of Arm. This was reported by the Financial Times on November 13 at 20:02 MSK. The position is currently held by Jensen Huang.
Arm is a British developer of processor architecture. Chips in almost all smartphones are built on its licenses. Haas runs this company.
Huang is a co-founder of Nvidia and its permanent head. The market associates the company's entire pivot toward AI chips with his name. That is why talk of his replacement moves the stock itself.
What has already happened with the shares?
This is the second episode of one story in two days. The first happened a day earlier.
- November 12. It became known that the board of directors is looking for a replacement for Huang. NVDA shares lost 9.6% in after-hours trading.
- November 13. The search acquired a specific name and a specific offer.
Why does this move the whole market?
Nvidia is one of the heaviest stocks in the S&P 500 and Nasdaq 100. Its candle drags both indices along with it.
- S&P 500 - the index follows the move in NVDA.
- Nasdaq 100 - the second index that depends on the same stock.
- Semiconductor sector - reacts together with Nvidia.
What does this mean for a trader?
The main thing: the move in NVDA is currently driven by corporate headlines, not earnings. They come out off-schedule.
There is no such report in the economic calendar, unlike Fed meetings and statistics. So it is impossible to prepare for the candle in advance by time.
What's next?
There is no official confirmation of the news. What to watch:
- Statements from Nvidia and Arm - both companies are silent so far.
- Rene Haas's response - unknown.
- Until Nvidia's next earnings - reports of a leadership change remain the main source of volatility in the stock.
We break down how prop trading works and access to large nominal value in the academy.
Woke up to a ready-made gap?
Such headlines come out without a schedule: the line "the board of directors called a competitor" is not in any calendar. The 9.6% move in an evening is caught by those who have nominal value at hand. In an account with a couple thousand dollars, such a candle turns into a couple dozen dollars. Prop trading works differently: the capital for the trade is provided by the company after a paid selection process, and the trader keeps an agreed share of the result. It is calmer to understand the mechanics now than on the next such gap.