NVIDIA Falls 4% as Board Probe of Jensen Huang Weighs on Shares; AMD and Broadcom Gain 3%

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is facing a second straight day of selling as its board investigates CEO Jensen Huang. NVIDIA stock is at $170.67, down 4% in early trading. That decline is measured from the November 9 close of $178.67, a day on which the stock also fell after the probe came to light.

This selling comes while NVIDIA’s fundamentals are still strong. The chipmaker posted Q2 FY2027 results on August 26 showing revenue of $96.22 billion, up 105.8% year over year, with Data Center revenue of $89.02 billion. Guidance for Q3 FY2027 calls for NVIDIA revenue of $108 billion, plus or minus 2%, which keeps the focus on leadership and governance.

Inside the Board Probe Weighing on NVIDIA

NVIDIA said on November 8 that a committee of independent directors will investigate Huang. The probe followed reports by The Financial Times and The New York Times that U.S. officials believed Huang had a relationship with a Chinese woman who was recruited to spy for China. Those allegations haven’t been publicly established.

Huang told employees he had an extramarital affair and apologized. The board said it has no reason to believe national security or company secrets were exposed. NVIDIA and Huang have been sued in the U.S. over the matter.

Outside voices are considering what’s at stake for NVIDIA. Yale professor Jeffrey Sonnenfeld put Huang’s odds of staying on as CEO at 50-50. Former Securities and Exchange Commission chair Gary Gensler stated that the key question is whether shareholders were misled.

Leadership continuity carries extra weight at NVIDIA. The company disclosed on August 26 that its supply commitments surged to $279 billion, largely for memory tied to its Vera Rubin platform. On the same day, management said NVIDIA has invested nearly $50 billion in frontier AI labs.

AMD and Broadcom Hold Their Gains

Advanced Micro Devices (NASDAQ:AMD) stock is at $521.98, up 3%. Meanwhile, Broadcom (NASDAQ:AVGO) stock is at $328.29, also up 3%. Both chipmakers rallied on November 9 as investors rotated toward NVIDIA’s rivals.

Gains in AMD and Broadcom are holding while NVIDIA extends its slide. Across the sector, chip stocks are mixed amid the NVIDIA scandal, a sign that money is moving within the sector. That difference ties the pressure to a question specific to NVIDIA’s leadership.

How NVIDIA’s Model Differs From AMD and Broadcom

NVIDIA sells what management calls an entire AI factory platform, covering graphics processing units (GPUs), processors, networking, systems and software that customers can use in any cloud. The CUDA software ecosystem helps keep developers building on NVIDIA hardware. Huang described that platform on the August 26 call as covering the full AI life cycle, from data preparation and pretraining through agentic inference.

AMD competes most directly with NVIDIA in AI accelerators, combining Instinct GPUs with EPYC server processors in its Helios rack-scale systems. The company also offers its open ROCm software stack to AI developers as a counterweight to CUDA.

Broadcom takes a separate path by designing custom AI accelerators for hyperscale cloud customers, along with the networking chips that connect large AI clusters. An infrastructure software segment, built largely through the VMware acquisition, gives Broadcom a revenue stream outside semiconductors.

What Comes Next for NVIDIA and Jensen Huang

What the independent directors’ committee finds and whether Huang remains CEO will be a key question for NVIDIA. NVIDIA’s upcoming earnings report is the other near-term catalyst, offering a read on whether customer demand holds through the leadership questions.

The bulls can point to demand that exceeds supply at NVIDIA, and on the August 26 call Huang said, “We’ve got a huge year coming up next year, and it’s going to be pretty extraordinary.” Considering against that, the bears cite the lawsuit, the risk of a leadership change and a hotter-than-expected October Consumer Price Index reading. That index rose 0.4% month over month, adding pressure on rate-sensitive growth stocks like NVIDIA and renewing debate over Federal Reserve rate hikes.

For now, NVIDIA’s AI demand and its leadership question are pulling the stock in opposite directions. A conservative investment approach may be warranted until the board’s review of Huang concludes.

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