AVGO Falls as Nvidia Turmoil Tests the AI Chip Rally

AVGO, the Nasdaq ticker for chipmaker Broadcom, fell sharply on Friday, November 13, 2026, after Rothschild & Co Redburn downgraded the stock. CNBC reported that shares dropped 5% after the analyst firm moved Broadcom to neutral from buy. The move interrupted a rally that had been fed by investors looking for alternatives to Nvidia, whose chief executive resigned a day earlier.

The two stories are linked. Nvidia’s leadership crisis pushed money toward rival AI chip suppliers earlier in the week, and Friday’s downgrade questioned how durable that shift is.

Why did AVGO fall on November 13?

According to Investing.com, Redburn cut its price target on Broadcom by 33%, to $398 from $595. The firm pointed to Broadcom’s growing exposure to AI financing arrangements. Its analyst, Mike Harrison, wrote that Broadcom’s tie to Anthropic and OpenAI means those labs must “become self-financing in short order.”

Investing.com reported that Redburn put Broadcom’s maximum potential liability on a backstop for Anthropic’s rack leases at about $43 billion. Redburn also noted that up to 15 gigawatts of compute for Anthropic and OpenAI underpins Broadcom’s $230 billion fiscal 2028 AI revenue guidance, and that both labs rely heavily on credit markets.

Reported declines varied by time of day. CNBC cited a 5% drop, Investing.com cited a 5.3% fall to $345.23 in morning trading, and Yahoo Finance showed a decline of about 6.5% at 10:26 a.m. Eastern. Investing.com said the selloff reversed part of a rally of roughly 25% over five sessions, while CoinCodex put the five-day gain at 17%, so the measure used matters.

Other analysts were more positive. Investing.com reported that KeyBanc kept an Overweight rating with a $575 target, and Rosenblatt kept a Buy rating with a $600 target. Invezz reported that 29 of 31 analysts covering Broadcom maintain Buy ratings.

What happened at Nvidia?

Jensen Huang, the co-founder of Nvidia, resigned as chief executive and board member on Thursday, November 12. CBS News reported that the decision followed an investigation into his affair with a woman U.S. intelligence agencies suspect was spying for China. The woman, Alice Huang, is not related to him. She was an executive at Megaspeed International, a Singapore-based data center company, according to CBS.

NBC News reported that Nvidia’s board said on November 8 it was examining whether Huang had been the target of a foreign intelligence effort. The board added at the time that it had no reason to believe national security or company secrets were compromised. CNN reported that Beijing has denied the espionage allegations. It also reported that U.S. intelligence is still assessing Alice Huang’s ties to the Chinese government.

Chief Financial Officer Colette Kress is serving as interim CEO while the board searches for a permanent leader, according to CNN. CNBC reported that Nvidia stock closed down 4.34% on Thursday after falling as much as 13% earlier in the session. Bernstein halved its price target on the stock to $200 from $400.

On Friday, CNBC reported Nvidia fell as much as 3.5% in early trading, bringing its weekly decline to almost 14%. The stock has dropped for six straight weeks and is down 31% over that stretch. Yahoo Finance reported it was on course to close the week below a $4 trillion market value.

What does the AVGO selloff mean for the AI trade?

The broader market was weak on Friday. Yahoo Finance reported that the Nasdaq Composite fell about 1.6% and the S&P 500 about 0.8% in morning trading as wholesale inflation rose, with chip stocks leading the decline. Yahoo said AMD dropped roughly 9% and Intel about 5% at the time of its report. CNBC noted that the major averages were still on track for a weekly gain.

For businesses that buy AI hardware, the episode shows how concentrated the supply chain is in a few suppliers and a few AI labs. For investors, the debate is whether the Nvidia controversy is a company-specific governance problem or a signal about the wider AI buildout. Yahoo Finance said investors are weighing exactly that question. Some strategists told the outlet that Nvidia’s valuation looks compelling, while Redburn’s note argues that Broadcom’s AI revenue depends on how well customer labs can fund themselves.

Earlier coverage on this site examined why AMD’s AI chip rebound arrived on November 11. The policy side is covered in a look at whether a Democratic Congress will replace the state-level AI patchwork.

What is Congress asking of Nvidia?

TechCrunch reported that House Foreign Affairs Committee Chairman Brian Mast said Huang agreed to testify by Thanksgiving, after lawmakers threatened a subpoena. Mast, House China Select Committee Chairman John Moolenaar and House Intelligence Committee Chairman Rick Crawford had written to Huang on November 4. The testimony is expected to be closed-door, but Mast said he expects it to be recorded and transcribed.

24/7 Wall St. noted that no statement from Huang, his lawyers or Nvidia confirmed Mast’s account, and that the committee had not set a date. CBS reported that Senator Elizabeth Warren said Huang’s departure does not absolve him or the company, and that Nvidia still owes Congress answers on export-control compliance.

What to watch

• November 17: Nvidia’s third-quarter earnings report, which Yahoo Finance said carries higher stakes after the leadership change. Watch guidance and any comment on China exposure.
• Before November 26: Huang’s expected closed-door session with three House committees. A date has not been announced.
• December 3 and December 10: Requested Senate testimony from Huang and Commerce Secretary Howard Lutnick, according to 24/7 Wall St. Neither hearing is scheduled.
• Nvidia’s CEO search: the board said it will consider internal and external candidates, according to CNN.
• Broadcom’s AI financing: any response to Redburn’s $43 billion backstop estimate and updates on Anthropic and OpenAI funding.

Frequently asked questions

Sources

• Stocks making the biggest moves Friday: Nvidia, Microsoft, Cerebras & more (CNBC)
• Redburn lowers Broadcom to Neutral on limited re-rating potential (Investing.com)
• Why is Broadcom stock sliding today? (Investing.com)
• Rothschild downgrades Broadcom stock rating on AI financing concerns (Investing.com)
• Broadcom stock falls 6% as this firm flags AI financing risks (Invezz)
• Broadcom Stock Gains 17% in a Week as Nvidia Sell-Off Sends Investors Looking for AI Alternatives (CoinCodex)
• Nvidia stock slips as investors digest CEO exit, broader chip sector falls (Yahoo Finance)
• Stock market today: S&P 500, Nasdaq turn lower as wholesale inflation rises, Nvidia stock falls (Yahoo Finance)
• Nvidia stock closes down over 4% after CEO Jensen Huang announces resignation (CNBC)
• Nasdaq falls on Friday as Nvidia keeps sliding, but major averages are up for week (CNBC)

Top image: Dicklyon / Wikimedia Commons (CC BY-SA 4.0)

This article was produced by the Intelligence Report Desk. Sources are linked below.