Advanced Micro Devices Inc. (NASDAQ:AMD) and Broadcom Inc. (NASDAQ:AVGO) shares are continuing to rally Thursday as investors move toward rival chipmakers while the board of Nvidia Corporation (NASDAQ:NVDA) reportedly weighs the future of CEO Jensen Huang.
- AMD shares are climbing with conviction. Why is AMD stock up today?
Nvidia’s Board Is Reportedly Preparing to Remove CEO Jensen Huang
The Wall Street Journal reported Wednesday, citing people familiar with the matter, that Nvidia’s board is preparing to oust Huang after reports that he had two extramarital affairs, including one with a woman U.S. officials deemed to be a Chinese spy, and that directors could meet as soon as Wednesday to decide his future.
The Journal’s report followed a New York Times story alleging that Huang had a relationship with an Nvidia executive who reports directly to him. Days earlier, Huang admitted to an affair with a Chinese executive reported to be a suspected spy, which has raised national security concerns in Washington. When the board opened its inquiry, it said it had no reason to believe that national security or Nvidia secrets were compromised.
Investors Rotate Toward AMD and Broadcom as Nvidia Shares Fall
Nvidia shares fell 8.08% in after-hours trading Wednesday to $159.68, while AMD rose 3.87% to $574.29 and Broadcom rose 2.35% to $353.32. The moves point to a rotation within the chip sector. AMD sells its Instinct line of graphics processors, the most direct competitor to Nvidia’s data center products, and Broadcom designs custom AI accelerators for major cloud customers and supplies networking chips used across large data centers.
Investors who want AI exposure without questions about Nvidia’s leadership have few large-cap alternatives, and the two sit at the top of the list. Nvidia was already struggling, down 7% this week and on pace for a sixth straight weekly decline, and its shares have lost about 23% over the past month, CNBC reported.
AMD, Broadcom Shares Rally While Nvidia Falls
Price Action: At the time of publication, AMD shares are trading 2.81% higher at $568.44, AVGO shares are trading 1.93% higher at $351.90, and Nvidia shares are trading 7.40% lower at $160.87 according to data from Benzinga Pro.
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