AMD Eyes Equity Stake in PsiQuantum as Chipmaker Pushes Into Utility-Scale Quantum

U.S. stock futures rose after Nvidia CEO Jensen Huang's sudden departure caused initial losses. Nvidia shares fell 4% but recovered slightly in after-hours trading. Colette Kress, CFO, will serve as interim CEO. Rival chipmakers AMD and Broadcom gained over 5%, while AI chipmaker Cerebras Systems jumped 17% after strong earnings. Wall Street is still on track for weekly gains despite concerns over AI spending and regulatory scrutiny.

Nvidia's stock has dropped 30% from its peak after CEO Jensen Huang's resignation, prompting traders to reassess AI-related investments. Analyst Gil Lauria maintained a Buy rating on Nvidia but lowered his price target to $200, while favoring AMD, Broadcom, and Micron in the near term. Rising 10-year Treasury yields are increasing debt costs for Nvidia's customers, potentially impacting demand.

AMD plans to invest in PsiQuantum, expanding their partnership to include GPUs, CPUs, and software for quantum computing applications, particularly in drug discovery. PsiQuantum's PRISM decoder demonstrated low latency on AMD's FPGA. The investment amount was not disclosed.

Wall Street declined on November 12 after Nvidia's CEO Jensen Huang resigned, causing investor uncertainty. The S&P 500, Nasdaq, and Dow Jones all fell. AMD and Broadcom rose, while Global Payments and Super Micro Computer dropped. Nvidia's leadership change raises questions about its AI strategy and market position, with upcoming earnings being a key test.

Advanced Micro Devices (AMD) shares rose 5.86% to $585.30, with trading volume 127% above average, after Bank of America raised its price target to $700, citing strong chip demand. The upgrade follows AMD's 97% yearly revenue growth in its data center segment and expectations of server revenue doubling in 2027. AMD's gains contrast with declines in peers Intel and Nvidia, which fell 2.08% and 4.34% respectively.

Nvidia's (NVDA) CEO Jensen Huang resigned after reports of affairs, with CFO Colette Kress taking over. NVDA stock fell 4%, while rivals Broadcom (AVGO) and AMD (AMD) rose over 5%. Nvidia has significant investments and commitments in AI-related companies, including OpenAI and Meta (META), totaling $530 billion. Slower customer payments and a shrinking portfolio add to concerns.