Move Over Nvidia, I’m Adding AMD, Boosting Price Target
Here’s how I’m managing my high-end chip designers after the alleged Jensen Huang scandal.
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Readers who have been following, know for years now that I believe in what CEO Lisa Su is doing at Advanced Micro Devices (AMD). That name has been a “top five” holding in the Sarge-folio more often than not for a very long time. AMD crushed third-quarter earnings last week and posted impressive guidance. But I informed readers that with the electoral results being what they were, that I would be reducing exposure alongside most other professionals.
I also informed readers on Friday that late Thursday amid the carnage that hit tech, I had repurchased all of the AMD that I had sold and then bought some more. With the stock down 17.3% on Thursday and up 11% on Friday, that actually turned out to be one of my best trades of 2026 and made the losses that I suffered elsewhere last week more manageable.
This morning, I bought even more AMD. Just after I sold half of the Nvidia (NVDA) that I still had in inventory. Readers may recall that I had also reduced Nvidia ahead of the election and had exited both SanDisk (SNDK) and Micron (MU). Those exits and reductions worked. In all honesty, I also exited Intel (INTC), though far less gracefully. Why did I sell more NVDA?
Uh Oh, Jensen!
That stock was down this morning after the company’s board of directors announced that it had opened an investigation into reports that CEO and co-founder Jensen “The Fonz” Huang had been targeted by a foreign espionage operation. This came after reports had circulated across news agencies going into the weekend that Huang had been involved in a romantic relationship with a woman who had been recruited to spy for China’s Ministry of State security.
The romantic partner, Alice Huang, is an executive at Megaspeed, which is Singapore-based and also a Nvidia client. Jensen Huang has said that he would cooperate with this investigation, which will be led by Nvidia’s independent board directors and will be assisted by an external law firm.
Why is this so damaging? Without a doubt, this hurts Jensen Huang’s reputation. The admission of having had this affair comes after having previously dismissed suggestions of an improper relationship between himself and this same woman. There are obviously national security and corporate issues here that I hope the investigation will clear up. That could steer business toward competitors, of which AMD is considered to be the top dog. Huang is also married and has been since 1985, so forget about the potentially scandalous implications, the man may be distracted from his job for a bit.
There’s More
The New York Times, who originally broke the story of this alleged attempt at espionage, reported that Megaspeed purchased more than $4.8 billion worth of Nvidia’s chips over the past two years. Nvidia supposedly continued to sell to Megaspeed after the Times had disclosed a U.S. Commerce Department investigation into whether that particular customer was aiding in moving restricted AI-capable chips into China.
AMD News…
On Monday morning, AMD announced that its fifth-generation EPYC server processors will now power Alphabet’s (GOOGL) Google Cloud’s TPU 8tx, the first cloud TPU system with hardware-based confidential computing. AMD’s processors will handle data preparation and workloads while helping protect sensitive AI models, customer data, and information during processing. AMD has now revealed that the company’s EPYC processors are used by more than 10 different leading hyperscalers and AI labs, supporting systems already powered, interestingly, by Nvidia GPUs, and AMD Instinct GPUs.
AMD Plan
Just as a heads up, the recent repurchases coupled with the additional purchases have taken AMD up to the Nov. 1 spot in the Sarge-folio. Yes, AMD is now my heaviest exposure just a few days after it had been exiled from my “top five.” Hey, in this quick market, where algorithms are the enemy, one cannot sit back and hope. One has to act when avenues of opportunity make themselves apparent. For those about to ask, Nvidia is no longer a “Top 15” holding and has been relegated to “odd lot” status.
Readers will see that at last week’s lows; AMD tested the lower trendline of our Andrews’ Pitchfork model. The gap created last week has already been filled. The pivot now moves from defense to offense. In short, that means that the pivot moves from the 200-day simple moving average to the 50-day SMA. Relative Strength has improved rapidly since last week and is now approaching the neutral line. The daily moving average convergence divergence is still posture bearishly but is showing signs across all three components of potentially improving that posture.
Target Price: $619 (up from $516)
Pivot: 50-day SMA (currently $547)
Add: Down to the 200-day SMA (currently $417)
Panic: Loss of the 200-day SMA
At the time of publication, Guilfoyle was long AMD, NVDA equity.
