Nvidia faces governance risks; watch these 2 chip stocks for buy opportunities Investing.com Thu, November 12, 2026 at 1:14 AM EST 5 min read NVDA -4.90% AMD +9.18% AVGO +5.01% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Investing.com-- NVIDIA (NVDA) fell 7.8% in after hours trade on Wednesday following a report that the board is preparing to oust CEO Jensen Huang. Read more
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Shares of AMD and Broadcom rose in response, with the two being viewed as potential beneficiaries of a prolonged governance crisis at what is arguably their biggest rival.
The allegations: Huang admitted an affair with an executive at Megaspeed, a Singapore data-center company that is a large Nvidia customer. US intelligence reportedly suspects her of being a Chinese intelligence asset. Read more (Nov 10, 2026)
The probes: The board has opened an investigation, and Trump said the FBI is looking into it. Nvidia says it has "no reason to believe" secrets were compromised.
The damage: Over two sessions, about $427B of market value was erased. Baird downgraded the stock to neutral. Morgan Stanley dropped it from its Top Pick list, and BofA removed it from its U.S. 1 List. Read more (Nov 11, 2026)
Key-man risk: There is no succession plan. Yorkville's Dan Ives values Nvidia at $300 with Huang and $225 without. Read more
NVIDIA (NVDA): $173.73 (Market Cap: $4.20T) || 1M -23.2% || Fair value $261.16 (+50.3%) || Analyst target upside +82.2%
AMD (AMD): $552.90 (Market Cap: $906.8B) || 1W +36.7%, YTD +152.6% || Fair value $420.48 (-23.9%) || Analyst target upside +18.9%
Broadcom (AVGO): $345.22 (Market Cap: $1.65T) || 1W +18.4%, YTD -2.1% || Fair value $419.68 (+21.6%) || Analyst target upside +54.5%
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Prices are the Nov 11 close. Fair value and analyst targets are as of Nov 11–12, 2026.
These are computed as the Nov 11 close divided by next-fiscal-year consensus EPS:
Nvidia is cheap on paper, and that is the tension. Revenue grew 65.5% last fiscal year to $215.94B, with a 71.1% gross margin. Next quarter's consensus is $108.8B in revenue and $2.47 EPS, ahead of the Nov 17 report. It beat on both lines in its last two quarters. Estimates were not cut, with EPS revisions at +5.2% over 90 days. The discount reflects governance and China risk, not weaker fundamentals. Wells Fargo still expects a revenue beat. The risk is that a CEO exit or new China export controls hit a stock already down 23% in a month.
AMD is the momentum story. Its Q3 beat on Nov 3 was EPS $2.09 vs $1.94, and the stock rose 4.7%. EPS estimates have been revised up about 10% in 30 days. Consensus has revenue rising from $52.1B (FY2026) to $95.7B (FY2027). The stock is up 152.6% YTD but still about 16% below its $658.52 high. The fair-value model sits below the price, so much of the growth is already priced in.
Broadcom is the laggard that is catching up. It is about 30% below its $495 high and down 17% over three months. Its last two prints beat estimates, yet the stock fell 13% and 3.4% afterward, which shows how high the bar is. Estimates are flat over 90 days (-0.9%). The supports are JPMorgan's view of its Google TPU role and Anthropic's compute commitment. Read more (Nov 10, 2026) Its next report is Dec 9.
The rise in AMD and Broadcom is a rotation, not a new thesis. Hyperscaler budgets set AI spending, not Nvidia's headlines. Both stocks also rallied with the whole chip sector after a steep selloff.
Case for: Broadcom has the best setup on valuation. It trades at about 18x next-year EPS, its fair-value model shows upside, and a pullback came before this bounce. AMD has the strongest estimate momentum.
Case against: Neither stock has structurally gained from Nvidia's trouble. BofA says share gains depend on prolonged scrutiny. A quick resolution, or a strong Nov 17 report, could send money back to Nvidia. Rate risk is also growing after a hot CPI print. Read more (Nov 9, 2026)
Levels: NVIDIA (NVDA) falling below its 52-week low of $164.27 would mark a new phase of the sell-off. Broadcom (AVGO) reclaiming $350 would extend its rebound.
The data favors Broadcom's valuation setup over AMD's. Nvidia is the highest-variance case. It has the cheapest multiple and the biggest governance overhang, and there is no way to price the board's decision.
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