Nvidia Shares Rise 2.9% as Independent Investigation into Jensen Huang Continues

Key Facts

Nvidia shares rose 2.9% in the November 11 session, according to The Associated Press, as the independent investigation announced by the company’s board continued into reports that Jensen Huang had been targeted by a foreign intelligence effort. In a statement issued on November 8, the board said it had begun an investigation to examine the reports and the available information. It said it saw no reason to believe national security or company secrets had been compromised, but would examine the information available. The board affirmed its confidence in Huang and his leadership team, while saying the CEO supported the review and had pledged to cooperate. The announced steps therefore focus on investigating the matter, while the board’s statement does not announce Huang’s removal or a decision to change the leadership.

In a later statement issued on November 10, Nvidia identified who would oversee the review: a committee of independent directors enlisted John H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to conduct an independent and comprehensive investigation. The board’s first statement had said a committee of independent directors would oversee the work with the help of independent outside legal counsel. The arrangement places the investigation under the supervision of independent directors, with outside legal counsel. The Associated Press reported that Huang would remain CEO during the investigation and that a company spokesperson said the developments would not slow Nvidia down and Huang would continue to lead without interruption. The November 10 statement did not announce the investigation’s findings or when it would be completed.

Interest in the matter has extended beyond the company; The Associated Press reported that the Justice Department opened a separate investigation alongside Nvidia’s internal review. The agency also reported calls from both parties in Congress for investigations. Donald Trump told the agency he had spoken with Huang, who told him he did not know the woman in question was a spy, adding that he believed Huang would be fine. The Justice Department’s investigation adds a government track to the review overseen by the company’s board. But Nvidia’s two statements did not announce that its secrets or national security had been compromised; the board said it saw no reason to believe that had happened, while affirming that the investigation would examine the available information.

The stock’s move on November 11 followed a sharp decline in the November 9 session, when it fell 4.3% to close at $178.67, down $7.97, according to The Associated Press. The agency said the stock had lost 23% in the 30 days through November 9, amid broader concerns about an artificial intelligence bubble. Reuters reported that investor concern tied to the controversy wiped more than $427 billion from the company’s market value over two sessions through November 11. Still, The Associated Press attributed the stock’s rise in the November 11 session to a recovery in technology shares, making that session’s gain an indicator of the market’s movement at the time, not standalone evidence that concerns about the investigation had eased. The stock closed at $173.73 on November 11, according to EL7 data.

The case comes as the company faces scrutiny over business ties related to its chips; The Associated Press, citing a New York Times report, said Megaspeed bought more than $4.8 billion in Nvidia chips during the previous two years. On financial performance, Nvidia reported fiscal second-quarter revenue of $96.2 billion for the quarter ended July 26, up 18% from the previous quarter and 106% year over year. Data center revenue was $89 billion, up 117% year over year, according to the company. In the market, Baird cut its rating on the stock to Neutral, citing limited visibility into data center spending in 2027, the possibility of weaker demand and uncertainty over Huang’s tenure after next year. Morgan Stanley removed the stock from its top picks list while keeping its rating at “Overweight,” saying the stock had fallen more than 25% since it was added to the list the previous month. Investors are awaiting the earnings report expected on November 17, according to Investing.com.