NVIDIA shares fall 5.5% as independent investigator is appointed to examine available information

Key Facts

Independent members of NVIDIA’s board on November 10 appointed former federal attorney John Kim and law firm Wachtell, Lipton, Rosen & Katz to conduct a comprehensive independent investigation first announced on Sunday. The board said the investigation would examine all available information and that it had no reason to believe national security or company secrets had been compromised. The stock closed at $168.89 in the same session, according to EL7 data, while the Associated Press reported that it continued falling by about 5.5% at Tuesday’s close. That places the investigator’s appointment in the context of the stock’s decline, not a documented post-close rise. The board did not announce an investigation finding or a timeline for its completion.

The board’s statement distinguishes its initial position from what the investigation will conclude: having no reason to believe a breach occurred is not a final finding, according to the statement, which tasked the review with examining all available information. The board said Jensen Huang supports the review and has pledged to cooperate, adding that it has confidence in him and his leadership team. This position places Huang at the center of an independent review, as the investigation continues to establish the relevant facts. The statement offered no conclusion about any party’s responsibility. It also did not specify a timeline for completing the investigation.

The announcement followed Monday’s session, when NVIDIA shares lost $7.97, or 4.3%, erasing about $190 billion from its market value, according to the Associated Press. On Tuesday, the news agency reported that the stock was down about 5.5% at the market close. These figures reflect losses over two consecutive sessions, while the available sources do not establish a roughly 3% rise in after-hours trading. The company closed at $168.89 on Tuesday, according to EL7 data. The stock’s session move remains the immediate market context for the investigator’s appointment, with neither source attributing the decline to a single cause.

The board’s process is proceeding alongside a separate federal investigation. The Associated Press reported that the Commerce Department investigation was referred to the Justice Department and that its national security division is investigating whether Megaspeed violated export-control laws, citing a person familiar with the investigation. NVIDIA’s board statement did not say whether its investigation would cover the same issues or how it would intersect with the government’s inquiry. In the context of the controversy, Huang told the news agency that what he had discussed since meeting President Trump was “creating more jobs, bringing manufacturing back to the United States, and protection and national security.” The agency reported that Beijing called the Chinese espionage allegation “unsubstantiated” and said it was “nothing but a distortion.”

Scrutiny has also reached the courts. The Associated Press reported that individual investor Mark Kastenmacher sued NVIDIA and Huang, accusing them of misleading investors in their responses to media reports. The lawsuit seeks unspecified damages and a jury trial. The proposed class, according to the agency, includes buyers of NVIDIA shares between October 9, 2025, and November 8, 2026. The information provided contains no ruling in the case or determination of damages. This adds a legal track to the board review and federal investigation, with each remaining separate in the information disclosed.

NVIDIA is scheduled to hold its fiscal 2027 third-quarter earnings call on November 17 at 2 p.m. Pacific time, according to the company. It said results are expected to be publicly announced at about 1:20 p.m. Pacific time. The announcement does not say whether the independent investigation will issue an update before the call. In a separate report, the Associated Press quoted an analyst as saying he remains confident in the company’s ability to maintain its lead in the AI GPU market if Huang has to step down to a lesser role. This remains the analyst’s view of a possible scenario, while the board has not specified a succession plan for Huang.