European Chips Slump 8% on Nvidia CEO Exit; Defensives Lift DAX

Nvidia's Frankfurt-listed shares fell more than 8% on Thursday, Nov. 12, after Jensen Huang resigned as chief executive, dragging Europe's semiconductor names down with them. The broader market barely noticed. Germany's DAX closed up 0.57% at 26,816.06 and London's FTSE 100 rose 0.26% to 10,863.56, according to Investing.com's closing quotes.

France's CAC 40 gained 0.3% to finish at 8,361 — its fourth straight gain and its highest close since late August, Trading Economics reported. The pan-European STOXX 600 was quoted at 664.02, up 0.15%, after the cash close; if that holds as the final settlement, it marks a second consecutive record, above Wednesday's 663.05. The index touched 665.65 at the open and stood 0.42% higher at 665 at 11:45 GMT, Sharecast reported, before giving back most of its gains through the afternoon.

Which chip stocks took the hit?

The selloff was broad across the European semiconductor complex. BE Semiconductor, Soitec, Infineon and ASML all traded lower, Sharecast reported, with Infineon down 1.9% in Frankfurt afternoon trading according to Trading Economics. Asian chip stocks had fallen earlier in the day, and Wall Street opened lower in sympathy.

The move was a rotation, not a rout. Investors exited AI-linked names and moved into defensive sectors — healthcare, insurers and consumer goods. Sanofi rose 2% in Paris and LVMH added 0.6%, while TotalEnergies gained 1.5% after a sharp rise in third-quarter cash flow.

What carried the DAX higher?

Munich Re led the German index with a 3% gain after third-quarter results beat expectations. Siemens rose 1.5% on record orders and higher medium-term targets, and Allianz added 1.4% after raising the top of its 2026 operating profit outlook.

Not everyone joined. Merck KGaA fell 4.6% to the bottom of the DAX despite raising its full-year guidance — a decline that reads as a verdict on expectations rather than performance. Rheinmetall lost 3.2%. Defense names also slipped in Paris, where Airbus fell 1.2% and Thales 1.3%.

What moved London?

Burberry rallied more than 8% after first-half revenue rose 6%. 3i Group gained more than 5% on a new £750 million buyback, and Rolls-Royce climbed 2% after accelerating a £1.5 billion buyback, Trading Economics reported.

UK economic data helped the tone. The economy grew 0.7% in the third quarter, up from 0.5% in the second, Investing.com reported.

Index scoreboard

Index	Close	Change
DAX	26,816.06	+0.57%
FTSE 100	10,863.56	+0.26%
CAC 40	8,361	+0.3%
STOXX 600*	664.02	+0.15%

*As quoted by Investing.com at 12:00 p.m. ET, after the close; not marked final.

Away from equities, oil rose after President Trump said the US does not need a deal with Iran, and the 10-year Treasury yield returned above 5%.

What comes next for the chip trade?

The day's message is twofold. European semiconductor suppliers — ASML, Soitec, BE Semiconductor and Infineon among them — remain tightly coupled to Nvidia's fortunes, and a leadership change in Santa Clara moved their prices within hours. Yet the wider market absorbed the shock comfortably, because insurers, luxury and healthcare had enough earnings substance to take the weight. Whether the STOXX 600's second record close survives final settlement, the rotation out of AI-linked stocks into defensives looks set to define trading until Nvidia's succession picture clarifies.