AMD Stock Falls 10.8% as Chip Sector Sells Off on Nvidia Scandal

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Advanced Micro Devices stock fell 10.8% on Friday, Nov. 13, as the chip sector sold off amid a scandal at rival Nvidia, reversing some of AMD's recent gains. The decline follows Nvidia CEO Jensen Huang's resignation after revelations of an extramarital affair with a suspected Chinese spy allegedly involved in funneling $7.5 billion of Nvidia chips into China. Investors now worry the scandal poses a fundamental risk to the industry. AMD had gained nearly 50% in the past week on bets customers would shift AI chip orders away from Nvidia, so some of Friday's drop reflects profit-taking. The S&P 500 and Nasdaq fell 0.8% and 1.3%, respectively.


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