Nvidia faces governance risks; Watch These 2 Chip Stocks for Buying Opportunities

Investing.com– NVIDIA (NVDA) fell 7.8% Wednesday after the market closed following a report that the board was preparing to oust CEO Jensen Huang. Learn more

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Shares of AMD and Broadcom rose in response, with both seen as potential beneficiaries of a prolonged governance crisis at what is arguably their biggest rival.

The context:

• The allegations: Huang admitted to having an affair with an executive at Megaspeed, a Singapore data center company that is a big customer of Nvidia. American intelligence services reportedly suspect her of being an asset of Chinese intelligence services. Read more (November 10, 2026)

• The probes: The board opened an investigation, and Trump said the FBI was looking into the matter. Nvidia says it has “no reason to believe” that any secrets have been compromised.

• The damage: Over two sessions, approximately $427 billion of the market value has been erased. Baird downgraded the stock to neutral. Morgan Stanley removed it from its Top Pick list and BofA removed it from its US 1 list. Read more (November 11, 2026)

• Risk linked to the key person: There is no succession plan. Yorkville’s Dan Ives values ​​Nvidia at $300 with Huang and $225 without. Learn more

Three snapshots

NVIDIA (NVDA): $173.73 (market cap: $4.20 billion) || 1M -23.2% || Fair value $261.16 (+50.3%) || Increase in analysts’ target +82.2%

AMD (AMD): $552.90 (market cap: $906.8 billion) || 1W +36.7%since the beginning of the year +152.6% || Fair value $420.48 (-23.9%) || Increase in analyst targets +18.9%

Broadcom (AVGO): $345.22 (market cap: $1.65T) || 1S +18.4%, YTD -2.1% || Fair value $419.68 (+21.6%) || Increase in analysts’ target +54.5%

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Prices are as of November 11 close. Fair value and analyst targets are as of November 11 and 12, 2026.

Assessment

These are calculated by dividing the November 11 close by the consensus EPS for the following financial year:

Where is each

Nvidia is cheap on paper, and that’s the tension. Income has increased 65.5% last fiscal year to $215.94 billion, with a gross margin of 71.1%. The consensus for the next quarter is $108.8 billion in revenue and $2.47 in EPS, November 17 report. He beat on both lines in his last two quarters. Estimates have not been revised downwards, with 90-day EPS revisions of +5.2%. The discount reflects Chinese governance and risk, not weak fundamentals. Wells Fargo still expects revenue to rise. The risk is that a CEO departure or new Chinese export controls could hit a stock already down 23% in a month.

AMD It’s the story of momentum. Its third-quarter high on Nov. 3 was $2.09 from $1.94, and the stock was up 4.7%. EPS estimates revised upwards 10% in 30 days. Consensus has revenue growing from $52.1 billion (FY 2026) to $95.7 billion (FY 2027). The stock is up 152.6% year to date, but remains about 16% below its high of $658.52. The fair value model sits below the price, so much of the growth is already priced into the price.

Broadcom is the latecomer who is catching up. It’s about 30% below its high of $495 and down 17% over three months. Its last two draws beat estimates, but the stock then fell 13% and 3.4%, showing just how high the bar is. Estimates are stable over 90 days (-0.9%). The materials are JPMorgan’s views on its Google TPU role and Anthropic’s commitment to compute. Read more (November 10, 2026) His next report is December 9.

Is this a buying opportunity?

The rise of AMD and Broadcom is a spin, not a new thesis. It’s hyperscalers’ budgets that drive AI spending, not Nvidia’s headlines. Both stocks also rebounded, as did the entire chip sector after a sharp decline.

• Case for: Broadcom has the best configuration in terms of valuation. It trades at around 18 times next year’s EPS, its fair value model shows upside potential, and a pullback occurred before this rebound. AMD has the strongest estimate momentum.

• Case against: Neither stock structurally benefited from Nvidia’s difficulties. BofA says stock market gains depend on prolonged careful examination. A quick resolution or strong report by November 17 could send money back to Nvidia. Rate risk also increases after a hot CPI release. Read more (November 9, 2026)

• Levels: NVIDIA (NVDA) falling below its 52-week low of $164.27 would mark a new phase of selling. Broadcom (AVGO) reclaiming $350 would extend its rebound.

The data favors Broadcom’s valuation setup over AMD’s. Nvidia is the case with the highest variance. This is the cheapest multiple and the largest governance surplus, and there is no way to price the board’s decision.

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Original article

Nvidia faces governance risks; Watch These 2 Chip Stocks for Buying Opportunities

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