NVIDIA shares close at $173.73 amid independent probe into security risks

Key Facts

NVIDIA shares closed at $173.73 on November 11, after rising 2.9% during the session, before falling 8.6% in after-hours trading amid reports of a board meeting to discuss Jensen Huang’s position, according to EL7 data and the Associated Press. The moves came as the chief executive faced scrutiny over a personal relationship and concerns about an attempt by foreign intelligence to target him, according to reports cited by the news agency. In a message to company employees dated November 8, Huang said, "I was unfaithful to my wife," and expressed his willingness to cooperate with the board’s investigation. The case centers on whether the matter could affect the company’s security and its ties with China, while Huang’s future had not been decided as of Thursday morning. The share price’s movements during the session and after the close show two separate trajectories in a single day, with the second linked to reports of the meeting.

NVIDIA’s board announced on November 8 that it had begun an independent investigation, saying a committee of independent directors would oversee it with the help of independent outside legal counsel. The board said it "has no reason to believe" that national security or NVIDIA’s secrets had been compromised, but said the investigation would examine all available information. The statement reflects the board’s position at the start of the investigation; it does not announce its completion or a final finding. The board also said it had confidence in Huang and his leadership team and would provide updates when appropriate. As of early Thursday, there had been no announcement of the outcome of the board’s discussions about the chief executive’s future.

The Associated Press reported that Huang had a relationship with a former executive at Megaspeed, who reports suspected was an agent of the Chinese government; that suspicion remained attributed to the reports. The agency reported that China denied trying to entrap Huang, while he pressed Washington to ease restrictions on sales of NVIDIA chips to China. The case thus intersects with broader scrutiny of chip export controls and the routes through which chips reach their destinations, alongside the investigation into whether the company or national security had been compromised. Megaspeed said it was committed to cooperating with the U.S. government "constructively and transparently." The company also hired a U.S. law firm to conduct a comprehensive inventory of its chips and verify export controls.

Investor concern extended to the broader sector; the Associated Press said investors feared a slowdown in the AI industry and questioned whether profits would justify the large investments in the technology. Separately, Baird downgraded NVIDIA to "Neutral," citing limited visibility into data center spending in 2027 and the possibility of weaker demand, as well as uncertainty over how long Huang would remain in his role. Morgan Stanley removed the stock from its top picks list while maintaining an "Overweight" rating, and its analysts said near-term uncertainty would persist and that Huang’s leadership was important to the company’s strategic direction. Reuters reported that investor concern related to the controversy erased more than $427 billion in the company’s market value over two sessions. These reports do not establish that those concerns caused the closing price on November 11, but they place the stock amid concurrent concerns about leadership and demand for AI chips.

Next, senior Republican lawmakers in the U.S. House of Representatives requested a closed-door briefing from Huang on the allegations and scheduled it for November 18. As of early Thursday, no outcome had been announced from NVIDIA’s board discussions about Huang’s future, while the company said the board would provide updates when appropriate. In a parallel track, Megaspeed said it would cooperate with the U.S. government in a review of its chips and export controls. The investigation launched by NVIDIA’s board remains separate from these steps and, according to the board’s statement, covers all available information. Attention is focused on what the investigations and reviews will reveal about information security and compliance with export controls, and on any subsequent announcement about the company’s leadership.