Hightower Advisors' Stephanie Link shifts from Nvidia to Micron amid leadership turmoil
A sharp selloff in Nvidia shares this week is prompting at least one prominent investor to rotate into another semiconductor name tied to artificial intelligence demand. Stephanie Link says she exits Nvidia and buys Micron Technology instead, citing governance concerns at Nvidia despite still-strong operating fundamentals.
Highlights
- Nvidia shares fell 12% this week after CEO Jensen Huang stepped down amid investigations and reports of extramarital affairs involving an alleged Chinese spy.
- Stephanie Link sold her Nvidia stake, citing leadership uncertainty, and redirected capital to Micron Technology, whose shares rose 14% over the same period.
- Link remains bullish on Nvidia’s fundamentals, anticipating $300 billion in free cash flow next year, but highlights short-term risks from leadership turmoil.
Portfolio shift follows Nvidia leadership upheaval
As reported by CNBC, Link says she sold her Nvidia stake after chief executive Jensen Huang stepped down on Thursday, with the investor redirecting money into Micron Technology. She says Nvidia's fundamentals remain very strong and expects the company's quarter next week to be very good, with $300 billion in free cash flow next year.Link says the stock is unlikely to trade on fundamentals for now because of the overhang from investigations, leadership changes and potential departures. Huang stepped down earlier Thursday after confirming this week that he had an affair, and multiple reports say the woman involved is an alleged Chinese spy.
The New York Times reported on Wednesday that Huang was involved in a second extramarital affair with an Nvidia executive. The developments have sent Nvidia shares down 12% this week.
Micron gains appeal as chip alternative
Over the same period, Micron shares are up 14%, giving Link another way to stay exposed to the semiconductor and AI trade. She describes Micron as having clean fundamentals, a clean story and a cheap stock, in contrast to Nvidia's current uncertainty.Even so, Link does not rule out returning to Nvidia. She says she would be willing to buy the stock again if the company gets an outstanding leader and moves past the current issues.
In earlier coverage, we examined Micron technical downside as weakening indicators pointed to potential further share declines.
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