AMD Shares Could Hit $600 After Nvidia Turmoil — But Risks Remain

AMD's stock is up 40% since hitting its November 5 low, the same week Nvidia lost both its founder and CEO. Huang resigned on Thursday, and Nvidia's shares tumbled more than 18% from their recent peak.

Currently, AMD is trading roughly 15% below its all-time high, and the $600 level is the next major hurdle. Three factors account for the recent move and what lies ahead.

1. The AI Boom Loses Its Face as Huang Leaves Nvidia

On November 8, Nvidia's board launched an investigation into an alleged relationship between Huang and a Chinese operative. Three days later, another report about an affair emerged.

Huang stepped down from Nvidia on Thursday, ending a 33-year tenure. CFO Colette Kress has taken over as interim CEO as the board looks for a permanent successor.

Investors acted quickly. Nvidia's stock dropped from $196.25 to approximately $160 on Thursday, an 18% decline. About 7% of that slide occurred after reports of the resignation.

As the most direct competitor to Nvidia's GPUs, AMD has benefited from that rotation.

2. Cracks Appear in Nvidia's CUDA Moat

CUDA (Compute Unified Device Architecture) is Nvidia's proprietary software platform, which for years made it slow and expensive to shift AI workloads to competing chips.

Investor Marcelo P. Lima claims that barrier has now collapsed.

“The Nvidia CUDA moat is gone. Anthropic sees all compute as fungible and it only took Mythos 3 days to figure out how to run itself on AMD hardware,” Marcelo P. Lima wrote on X

Claude Mythos Preview, Anthropic’s restricted-access frontier model, took about three days to bring up prompt processing for one Anthropic model on AMD MI355X GPUs.

With traditional methods, the same task historically required six to 12 months.

This is just one workload, not a complete migration. However, if porting times continue to shrink, the switching costs that have protected Nvidia's pricing power may erode.

3. AMD's Stock Chart Shows a Bullish Shift

Fibonacci retracement levels, drawn from the October 6 high to the November 5 low on AMD's chart, identify potential support and resistance areas based on ratios of the prior move.

AMD has already recovered the 0.618 level at $545, which now serves as support. The stock is trading near $562 at the time of writing.

The next resistance is the 0.786 level at $592, just below the $600 psychological round number, which also aligns with Oppenheimer's price target.

A decisive break above that zone could bring the October record of $658 back into focus.

On the downside, the 0.5 level at $514 is the key marker. A close below that would negate the bullish pattern.

What Risks Could Slow AMD's Rally?

The rally still faces four significant challenges.

• Nvidia's earnings due November 17. A strong initial report under Kress could draw capital back to the market leader.
• A credible permanent CEO. Nvidia's board is considering both internal and external candidates, and a solid choice could temper the shift away from Nvidia.
• Valuation. A Motley Fool analysis contends that AMD shares are still pricey, noting that even achieving 2027 growth targets would leave AMD's valuation above Nvidia's current level.
• A break below $514. A close below the 0.5 Fibonacci level would negate the bullish case.

With Huang's departure, Nvidia has lost the public face of the AI boom. For AMD, the remainder of November hinges less on the controversy and more on whether it can break through $600.