AMD shares | Shares of Advanced Micro Devices (AMD) have rallied as mounting controversy surrounds Nvidia chief executive Jensen Huang. Investors are closely watching developments at the AI chipmaker amid reports of a possible leadership change.
AMD shares closed at $552.90 on November 11, up from $404.40 on November 5. This represents a gain of approximately 36.7% over that period.
The rally comes as Nvidia faces growing scrutiny over reports involving Huang’s personal relationships and alleged national security concerns. AMD is one of Nvidia’s key competitors in graphics processors and artificial intelligence chips.
However, the recent movement does not establish that Nvidia’s troubles alone caused AMD’s gains. Broader market activity and other company developments may also influence share prices.
AMD shares | Nvidia Board Reportedly Considers Huang’s Future
Nvidia’s board announced an independent investigation on November 8. The inquiry followed reports that Huang had become the target of a foreign intelligence operation.
Huang also acknowledged being unfaithful to his wife in a message to employees. He apologised to his family and colleagues.
The board said it had no reason to believe that Nvidia’s secrets or national security had been compromised. It appointed independent directors and outside counsel to oversee the investigation.
On November 11, The New York Times reported another alleged relationship involving Huang and Kimberly Powell, Nvidia’s vice president of healthcare. The report cited people familiar with the company.
Powell’s role includes overseeing Nvidia’s healthcare business worldwide. The company and Powell had not immediately responded to requests for comment, according to reports.
Later, The Wall Street Journal reported that Nvidia’s board was preparing to meet to consider Huang’s future. The report raised the possibility of his removal as chief executive.
Nvidia shares fell more than eight per cent in after-hours trading on November 11 following the reports. The developments added to pressure on the company’s leadership.
How the Nvidia Controversy Unfolded
On November 8, Huang acknowledged an extramarital relationship in an apology to Nvidia employees. His statement followed reports about his association with Alice Huang, who is suspected by US intelligence officials of links to Chinese intelligence.
Nvidia’s board announced an independent investigation on the same day. It said the inquiry would examine whether Huang had been targeted by a foreign intelligence operation.
On November 9, China rejected the espionage allegations. Beijing described them as attempts to smear the country.
On November 11, reports emerged of a second alleged relationship involving Nvidia executive Kimberly Powell. The Wall Street Journal subsequently reported that the board was preparing to discuss Huang’s position.
The allegations remain subject to investigation and reporting. Nvidia has not publicly confirmed the reported second relationship or announced a decision to remove Huang.
AMD Emerges as a Rival Stock in Focus
AMD competes with Nvidia in graphics processing units and AI accelerators used in data centres. These chips support the computing infrastructure required to develop and operate artificial intelligence systems.
AMD remains smaller than Nvidia in the AI chip market. However, investors may view it as an alternative amid uncertainty surrounding Nvidia’s leadership.
AMD is led by chief executive Lisa Su. Both Su and Huang were born in Taiwan, and they are distant relatives, according to widely reported biographical accounts.
The latest developments have placed both semiconductor companies under close investor scrutiny. Nvidia’s leadership situation and AMD’s market performance are likely to remain key points of attention.
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