Nvidia Faces Potential Market Value Loss of More Than $470 Billion in Two Sessions as Investigations Intensify
Key Facts
Nvidia shares fell to $168.89 at the close on November 10, as the company was on track to lose more than $470 billion in market value over two sessions, according to a Reuters report. The report linked the sell-off to mounting concerns over reports that Chief Executive Jensen Huang was targeted in a foreign intelligence operation. Reuters said the selling was also affected by higher-than-expected U.S. inflation data, which raised expectations that the Federal Reserve would increase interest rates the following month. The report added that complications with a data center project in Ohio contributed to pressure on the stock. Investors are also questioning whether heavy spending on artificial intelligence can generate sufficient returns.
The company said its independent directors had begun an independent investigation after reports that Huang had been the target of a foreign intelligence effort. The board retained John Kim, a former acting U.S. attorney for the Southern District of New York, and law firm Wachtell, Lipton, Rosen & Katz to conduct the review. The board said it had no reason to believe national security or company secrets had been compromised, and that the investigation would examine the available information. Huang said he supported the review and pledged to cooperate, while the board said it had confidence in him and his leadership team. An Nvidia spokesperson said the news would not slow the company and that Huang would continue to lead it as chief executive without interruption.
Reuters reported that the Federal Bureau of Investigation is separately examining whether Huang, 63, was targeted in a foreign intelligence operation. Allegations emerged that Huang’s relationship with Alice Huang helped facilitate shipments of Nvidia chips to China worth at least $7.5 billion, Reuters reported, without presenting this as an established finding. President Donald Trump said Huang had told him he did not know the woman was a spy; that was Trump’s account of their conversation, not an independent finding of the investigation. Reuters reported that the stock hit a seven-month low on Monday, November 9. The developments have heightened scrutiny of the relationship between the company’s leadership and potential risks associated with dealings with China.
The case underscores the sensitivity of Huang’s position within the company: he owns about 3.6% of Nvidia and does not hold majority voting rights, but dozens of executives report directly to him, according to Reuters. In a parallel legal track, a retail investor filed a proposed class-action lawsuit accusing the company and Huang of misleading investors about the relationship and its implications. The complaint sought unspecified damages and a jury trial, according to the Associated Press. Reuters also reported that the lawsuit accuses them of concealing Huang’s ties to a woman suspected of being a Chinese spy. Nvidia scheduled a call to discuss results for its fiscal 2027 third quarter on November 17 at 2 p.m. Pacific time, the next announced event in the company’s newsroom.