Broadcom Rallies 5% as Traders Bet on Chip Rivals After Jensen Huang’s Exit; NVIDIA Falls 5%, AMD Climbs 2%
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Jensen Huang’s exit as CEO has money rotating out of NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and into its chip rivals. Leading that shift is Broadcom (NASDAQ:AVGO), a key supplier of custom AI silicon. Broadcom stock is trading at $363.99 this morning, up 5%.
The company designs custom AI accelerators, including Alphabet‘s (NASDAQ:GOOGL) Google tensor processing units (TPUs), along with networking chips for hyperscale cloud providers. That mix makes Broadcom a natural candidate to win more work if NVIDIA customers diversify their suppliers. In Q3 FY2026, Broadcom’s AI semiconductor revenue reached $16.7 billion, up 221% year over year.
Jensen Huang’s Exit Sends Traders Toward NVIDIA Rivals
NVIDIA announced on November 12 that Huang resigned as CEO, president and board member, effective immediately. Chief financial officer Colette Kress is serving as interim CEO while keeping her finance role, and the board is reviewing internal and external candidates. Harvey C. Jones, named the board’s first-ever chair, stated that the board has “full confidence” in Kress and expects “the company’s operations, customer commitments and product roadmap to continue without interruption.”
Kress declared, “We will continue advancing the work that has made NVIDIA a leader in accelerated computing and AI.” Our earlier coverage tracked the reports. NVIDIA’s board was preparing to remove Huang, and the resignation confirmed that leadership change.
What NVIDIA and AMD Reveal About Broadcom’s Rally
NVIDIA stock is at $164.32, down 5%. The decline in NVIDIA stock had reached as much as 13% before buyers cut the loss. Wolfe Research analyst Chris Caso told CNBC, “It’s sort of like the Apple Steve Jobs moment,” and added, “Nvidia sold out through the end of next year. The roadmap is set.”
Despite the turbulence, NVIDIA confirmed it’ll still report its Q3 FY2027 results on November 17 after the market close. Wall Street analysts expect earnings of $2.47 per share on revenue of $109 billion. In Q2 FY2027, NVIDIA’s data center revenue reached $89.02 billion.
Gains are also showing up at Advanced Micro Devices (NASDAQ:AMD). AMD stock is at $562.44, up 2%, a smaller advance than Broadcom’s. William Blair upgraded AMD to Outperform from Market Perform on November 12, citing NVIDIA’s leadership uncertainty and AMD’s improving competitive position. BofA Securities raised its AMD price target to $700 from $650 while repeating its Buy rating.
Floodlines Research founder Anna Wu told Bloomberg, “AMD as a direct competitor, and Alphabet and Broadcom in the TPU space, are natural beneficiaries in the short term.” That view fits Broadcom and AMD rising while NVIDIA falls. Intel (NASDAQ:INTC) is sliding with the broader chip group, which shows the rally is selective. Pepperstone’s Chris Weston said markets appear to be separating NVIDIA-specific risk from the broader AI trade, according to Barron’s.
How Broadcom’s Business Model Differs From NVIDIA and AMD
Broadcom makes its AI revenue by co-designing custom accelerators and networking chips with a small group of hyperscale customers, and an Infrastructure Software business built on VMware gives the company a recurring software stream that NVIDIA and AMD don’t have. That structure ties Broadcom’s growth closely to the spending plans of its largest customers.
NVIDIA sells off-the-shelf graphics processing units (GPUs) such as Blackwell and Vera Rubin, backed by its CUDA software ecosystem, and AMD pairs its Instinct GPUs with EPYC server processors in new Helios rack-scale systems sold to many buyers. Intel remains an integrated manufacturer, combining Xeon server chips, a foundry business and heavy exposure to personal computers.
What’s Next for Broadcom
Broadcom’s next hurdle is whether hyperscale customers direct more custom-chip work its way while NVIDIA rebuilds its leadership. Investors can point to Broadcom’s forecast of $21.7 billion in Q4 FY2026 AI semiconductor revenue, and the company’s upcoming earnings report could show whether that demand is building.
NVIDIA’s sold-out roadmap hands the bears a counterpoint, since it may limit how much business actually shifts to rivals. A smooth CEO transition could also unwind the rotation quickly, and NVIDIA’s next quarterly report offers an early read on customer loyalty. Investors may prefer smaller chip-stock exposure until NVIDIA’s CEO search is resolved. For traders hunting the pattern behind the next monster chip winner, we reverse-engineered what the early traits looked like in a free guide here: The Next NVIDIA Playbook.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk. His work has appeared in 24/7 Wall St., The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, MarketScreener, TalkMarkets, Finmasters, and others. With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
