Key Notes
- AMD and Broadcom gained about 30% and 24% for the week in a November 13 market snapshot.
- Nvidia fell about 11% over the same period as investors reassessed its leadership transition.
- Nvidia will report fiscal third-quarter earnings on November 17.
Nvidia (Nasdaq: NVDA) is losing ground to other semiconductor stocks as investors reassess the AI trade following Jensen Huang’s departure.
A November 13 market snapshot puts the week-to-date moves at:
- AMD (Nasdaq: AMD): up about 30%.
- Broadcom (Nasdaq: AVGO): up about 24%.
- TSMC (NYSE: TSM): up about 11%.
- Nvidia: down about 11%.
Chipmakers Compete for Scarce Capacity
SemiAnalysis chief executive Dylan Patel told CNBC that Huang’s relationships with suppliers helped Nvidia secure scarce manufacturing capacity. His exit could give competing chip designers more room to negotiate for that supply, Patel argued.
TSMC occupies a different position from the designers. Its foundry model centers on manufacturing customers’ chips. That gives it a way to participate in AI demand across multiple designs, even when investors disagree over which designer will win the most business.
Earnings Give Rivals a Base for the Rally
AMD’s third-quarter revenue rose 45% to $13.4 billion, according to results released November 3. Its data-center business generated $8.5 billion, up 97%, driven by EPYC processors and Instinct GPUs. Data centers now contribute almost two-thirds of its sales.
Broadcom’s exposure runs through custom AI accelerators and networking. In its September earnings release, the company reported $16.7 billion in fiscal third-quarter AI semiconductor revenue, up 221% from a year earlier. It forecast $21.7 billion for the fiscal fourth quarter.
Nvidia’s New Leadership Faces Investors
Nvidia appointed finance chief Colette Kress interim CEO after Huang’s resignation, with Kress retaining the CFO role during the search for a permanent successor. The board has said it expects customer commitments and the product roadmap to continue without interruption.
The next scheduled opportunity to assess that message comes November 17. Nvidia has kept its earnings date and will report fiscal third-quarter results, followed by a call with investors.
