AMD leads chip sell-off, reversing post-Huang rally

Chipmakers that rallied on Jensen Huang's departure from Nvidia ↘ 2.12% gave back those gains on Friday, November 13. A tech-led selloff hit the semiconductor sector broadly. Advanced Micro Devices ↘ 8.79% fell as much as 11% in early trading, Broadcom ↘ 4.90% lost about 6% and Intel ↘ 2.96% dropped about 6%, 24/7 Wall St. reported. Nvidia slid more than 4% as investors continued to weigh the loss of its co-founder, and the stock was on track to end the week below a $4 trillion market value, according to Yahoo Finance.247wallst.com+1

The drop reversed Thursday's rotation, when investors sold Nvidia and bought its rivals. AMD rose 5.86% and Broadcom 5.54% that day, while Nvidia closed down 4.34%, IBTimes reported. Through Thursday, AMD had gained 30% for the week and Broadcom 24%.ibtimes.com

Selling spreads across tech

By late morning, the Philadelphia Semiconductor Index PHLX Semiconductor Index ↘ 3.57% was down 6%. AMD and Broadcom were off 10% and 7%, respectively, and the Nasdaq Composite had lost 1.74%, Reuters reported. Tech was the worst-performing sector in the S&P 500 ↘ 0.48%. Neocloud providers CoreWeave ↘ 6.13% and Nebius ↘ 8.33% each fell 10%. A slightly softer October producer price report did little to help.sanluisobispo.com

The selling went well beyond the rotation trade. Taiwan Semiconductor Manufacturing ↘ 1.73% fell more than 3%, Sandisk ↘ 7.65% dropped 9%, and Micron Technology ↘ 3.45% lost 5%, Yahoo Finance reported. 24/7 Wall St. said profit-taking after a fast run was the most likely explanation for AMD's slide. It added that Intel, which was not part of Thursday's rotation, showed the pressure reaching the wider sector.finance.yahoo.com+1

Huang's sudden exit

Nvidia's board announced on November 12 that Huang had resigned as president, CEO and director, effective immediately. Chief Financial Officer Colette Kress will serve as interim CEO while the board searches for a permanent successor, according to the company. The resignation followed reports that Huang had an affair with a businesswoman whom U.S. authorities suspect of spying for China. Separate reports said he also had a relationship with a senior executive who reported to him, Reuters reported.investor.nvidia.com+1

Divided views ahead of earnings

Analysts disagree on what comes next. Wedbush's Dan Ives told Bloomberg TV that Huang's exit "clearly evens the playing field" for Nvidia's rivals. Michael Burry wrote that chip valuations "still have a ways to fall," 24/7 Wall St. noted. James Demmert of Main Street Research said Nvidia's sentiment is "extremely negative" but pointed to its valuation as support, per Yahoo Finance.247wallst.com+1

The next test is Nvidia's third-quarter fiscal 2027 results, due Tuesday, November 17, according to Luno's summary of the company's SEC filing. Kress will present them as interim chief.luno.com