AMD and Broadcom Climb as Investors Rotate Away From Nvidia

Nvidia’s rivals rose on the day its shares fell. Advanced Micro Devices closed up 5.86% at $585.30, and Broadcom gained 5.54% to $364.36. Nvidia fell 4.34% to $166.19 on the same day.

The market read the split as rotation. Money leaving Nvidia appeared to move toward competing AI chipmakers. Motley Fool reported that both companies rose as investors looked for alternative AI names away from Nvidia.

The semiconductor index moved the other way. The SOXX index fell 0.26% to 154.99. Only AMD and Broadcom rose, not the sector as a whole.

AMD’s rise cannot be explained by the Nvidia episode alone. AMD gained more than 13% on Nov. 9 and 7.32% on Nov. 11, a rise of nearly 17% since Monday. Its third-quarter revenue rose 45% to $13.38 billion, reported on Nov. 3.

Broadcom has its own story as well. Its AI semiconductor revenue rose 221% to $16.7 billion. Custom chips for large cloud companies are its growth engine.

There is still no evidence that customers are actually canceling Nvidia orders and switching suppliers. The split in Thursday’s share prices alone cannot establish a shift in orders.

Jensen Huang resigned on Nov. 12, and Chief Financial Officer Colette Kress is serving as interim chief executive. The board is searching for a permanent successor. Nvidia reports earnings on Nov. 17.

The next test for investors is the earnings report. Kress’s first report as interim chief executive will show whether customers are actually shifting orders.