Nvidia falls a second day, down about 5.5%, as a reported $7.5B China chip claim piles on
Nvidia fell about 5.5% to $168.89 on Tuesday, its second straight heavy loss, wiping roughly $430 billion of market value in two days — as a reported claim that CEO Jensen Huang's relationship allegedly helped move at least $7.5 billion of chips to Chinese firms, which Reuters could not verify, piled onto an already falling stock.
📊 Scorecard: our Bearish call on $NVDA is scored from $168.89, the last close before it ran. Its first result comes after the next close.
The News
Nvidia fell for a second straight day on Tuesday, November 10. The shares closed at $168.89, down about 5.5%, after falling 4.27% on Monday. Roughly $430 billion of market value has been wiped out in two days. Microsoft briefly passed Nvidia intraday, but Nvidia ended the day still ahead — about $4.07 trillion to Microsoft's about $3.96 trillion — and remains No. 2 by market value.
The new reporting landed on top of an already falling stock. The Information reported, via Reuters, that CEO Jensen Huang's relationship with Alice Huang allegedly helped move at least $7.5 billion of Nvidia chips to Chinese firms. Reuters said it could not independently verify that figure, and Nvidia did not respond to the report. Separately, Reuters reported that about 600,000 advanced Nvidia AI chips are sitting in Hong Kong awaiting onward shipment to mainland China. Neither report establishes that any export-control rule was broken, and no finding of any violation has been made.
Nvidia's board has backed Huang. Independent directors, working with outside counsel — lawyers hired from outside the company to run an independent review — are running the review, and the board has said it has no reason to believe national security or company secrets were compromised. Nvidia reports third-quarter results on November 17. This story covers only November 10's new developments; the shareholder suit and the FBI angle were already published on November 10 and are not re-reported here as new.
Nvidia lost about $430 billion in two days — and the new reports are allegations, not findings.
Why It Matters
The fall matters because of what it says about trust. Nvidia is the most important company in the AI buildout — its chips power the data centres behind nearly every big AI model — and its value rests on two things: demand for those chips, and confidence that the company can keep selling them where it wants. The reports attack the second pillar. A claim that the chief executive's personal relationship helped move chips to China, even unverified, raises the question of whether the company's China business is under control.
The Hong Kong figure sharpens the same question from a different angle. About 600,000 advanced AI chips sitting in a warehouse awaiting shipment to mainland China is a large, visible stockpile at exactly the moment Washington is debating whether to tighten export rules further. It does not prove any rule was broken — chips can sit in Hong Kong for legitimate reasons — but it gives the hawks in Congress a concrete number to point at, and it arrives days before a possible vote on new controls.
The market's reaction is also about timing. Nvidia reports earnings on November 17, and until then investors have no fresh numbers from the company itself — only the reports, the board's backing of Huang, and the review. In that vacuum, the stock is priced on the worst version of the story. The board's statement that it has no reason to believe national security or company secrets were compromised is the one reassuring fact in the batch, but it has not been enough to stop the selling.
Analyst's Take
Our call is Bearish. Two straight heavy losses, roughly $430 billion gone — and while Microsoft briefly passed Nvidia intraday, Nvidia ended the day still ahead of Microsoft by market value — the market is pricing in more than a bad week. The new reports add a specific, damaging allegation to a story that was already about a board probe and a shareholder suit, and even though the $7.5 billion figure is unverified, the uncertainty alone is enough to keep buyers away until November 17.
What to watch: the November 17 earnings report, and anything the independent review produces before then. If the review clears the air, the stock has a catalyst to recover. If it does not — or if the export-control questions in Washington harden into law — the two-day slide could become something longer. Until then, the allegation hangs over the stock, unverified and unresolved.
Are you bullish or bearish on this story?
By The Numbers
FAQ
What is the $7.5 billion claim?
The Information reported, via Reuters, that CEO Jensen Huang's relationship with Alice Huang allegedly helped move at least $7.5 billion of Nvidia chips to Chinese firms. Reuters said it could not independently verify that figure, and Nvidia did not respond. It is an allegation, not an established fact.
What did Nvidia's board say?
Nvidia's board has backed Huang, with independent directors and outside counsel running the review, and said it has no reason to believe national security or company secrets were compromised.
What are the 600,000 chips in Hong Kong?
Reuters separately reported that about 600,000 advanced Nvidia AI chips are sitting in Hong Kong awaiting onward shipment to mainland China. That is a reported figure about chips in transit, not a finding that any law was broken.
How far has Nvidia fallen?
Nvidia fell 4.27% on Monday and about 5.5% on Tuesday to $168.89, wiping roughly $430 billion of market value in two days. Microsoft briefly passed Nvidia intraday, but Nvidia ended Tuesday still ahead of Microsoft by market value.
When does Nvidia report results?
Nvidia reports third-quarter results on November 17. That will be the first chance for the company to address investors directly since the reports emerged.
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Source: Indian Television