Nvidia CEO Removal Rumors Trigger AI Supply Chain Jitters: Micron and SanDisk Stocks Fall Pre-Market
Shares of memory chipmakers Micron and SanDisk dropped in Thursday pre-market trading, reversing Wednesday's gains amid reports that Nvidia directors are considering removing CEO Jensen Huang.
On Thursday, November 12, shares of US memory chip manufacturers Micron Technology and SanDisk fell in pre-market trading, partially reversing the previous day's strong rebound. The decline was triggered by media reports suggesting that Nvidia's board of directors was considering the removal of Chief Executive Officer Jensen Huang, unsettling investors regarding the stability of the broader artificial intelligence supply chain.
Data shows Micron traded at $790.92, down 2.51%, while SanDisk fell to $948.88, a drop of 2.95%. This followed significant gains of 11.89% and 13.69% respectively during Wednesday's regular session, driven partly by CoreWeave's latest results which had eased fears about slowing momentum in large AI infrastructure projects. However, sentiment shifted overnight as Nvidia's own stock plunged more than 8% after hours.
Despite short-term volatility, fundamental data offers some support. Micron's fourth-quarter revenue reached $54.23 billion, up from $11.32 billion a year earlier, reflecting strong demand for high-bandwidth memory (HBM) and rising prices. SanDisk's first-quarter fiscal revenue hit $11 billion, up 23% sequentially, with management forecasting $12.2 billion to $12.6 billion for the next quarter. Analysts note that if AI spending merely redistributes among suppliers rather than contracting, Micron, as a key HBM provider, may prove more resilient than SanDisk, which is more exposed to general storage market cycles.