Nvidia Fallout: Why AI Capital Is Shifting to AMD and Micron Now
As seen on the 24/7 Wall St. homepage on November 12, 2026.
Nvidia Fallout, AI Financing Risk and Apple’s Safe-Haven Surge
- Jensen Huang's exit leaves Nvidia down nearly a third from its $6 trillion peak, with the vendor-financing web in question
- DA Davidson's Gil Lauria keeps a Buy but cuts his target to $200, preferring AMD, Broadcom and Micron near term
- 10-year yields above 5.1% make neocloud financing costlier; NScale's S1 shows $5.5B of debt
- Apple at 39x forward earnings framed as a Costco- or Walmart-style safe haven
Capital is rotating within the AI trade, moving from the Nvidia complex toward AMD and Micron, while Apple gets priced like a staple on 90% iPhone loyalty and almost no AI capex. The pressure point is funding costs, with debt-heavy neocloud borrowers the first to feel a higher 10-year yield.
Continue ReadingShow less
Jensen Huang's resignation triggered a selloff that has taken Nvidia down nearly a third from its $6 trillion peak, and traders on Fast Money tie the damage to a broader reassessment of the vendor-financing web behind the AI infrastructure buildout. That reassessment decides which AI names hold up from here.
DA Davidson analyst Gil Lauria maintained his Buy rating on Nvidia but cut his price target to $200, and in the same breath named AMD, Broadcom, and Micron as his preferred names in the near term. That framing matters: a bullish analyst trimming his target while pivoting to alternatives is a signal that even committed bulls see better risk-reward elsewhere in the sector right now.
Sponsored
With 10-year Treasury yields above 5.1%, the cost of carrying debt has risen sharply for the neocloud companies that are Nvidia's biggest customers, and NScale's S1 filing shows how leveraged those borrowers already are. Higher rates on those buyers hit the demand pipeline that powered Nvidia's ascent.
At 39 times forward earnings, Apple is being treated as a staple rather than a growth trade, the name investors rotate into for a durable consumer franchise without the capex risk of an AI infrastructure bet. The comparison to Costco and Walmart captures the thesis: almost no AI capital expenditure, and iPhone loyalty providing a floor under revenue.
Sources
Mentioned: AMD, HUM, INTC, LLY, WMT, JNJ, MRK, AAPL, MU, CSCO, NVDA, TSLA, SMCI, SMCIP, JD
