Nvidia Sinks as Report Implicates CEO Jensen Huang in Affair Investigation
Investors weigh leadership uncertainty
Nvidia is facing scrutiny over its future as the company investigates Huang’s alleged affair with a Chinese spy. The article says the share decline has deepened amid the controversy.
Huang said Sunday that he had been unfaithful to his wife, had fallen short of his responsibilities to Nvidia and would cooperate with the investigation. He also said he remained committed to the company and U.S. national security.
Firms adjust Nvidia ratings
Baird cut Nvidia’s rating to neutral, citing limited visibility into 2027 data center spending, possible softness in demand and uncertainty over Huang’s tenure. Morgan Stanley removed Nvidia from its Top Pick list but kept its overweight rating. The stock had fallen more than 25% since it received that designation last month.
Price targets and broader pressures
Bank of America Global Research removed Nvidia from its U.S. 1 List. At least three other brokerages, including Wells Fargo and Citigroup, lowered their price targets earlier in the week. The article links Nvidia’s decline partly to a wider technology selloff following midterm election results that gave Democrats majorities in both chambers of Congress.
Key points
- Nvidia is investigating CEO Jensen Huang over an alleged affair with a Chinese spy.
- Huang said he had been unfaithful to his wife and would cooperate with the inquiry.
- The stock’s decline has unfolded amid a broader technology selloff.