What happened?
Shares of leading designer of graphics chips Nvidia (NASDAQ: NVDA) fell 4.4% in the morning session after the company's board of directors initiated an independent investigation into reports that founder and CEO Jensen Huang was targeted by foreign intelligence.
In a statement from Nvidia's board of directors, the company announced that the probe is overseen by independent directors and outside counsel, noting it has no reason to believe that trade secrets or national security were compromised.
After the initial drop, the shares shed some of the losses and rose to $178.95, down 4.2% from the previous close.
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What is the market telling us
Nvidia’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 5.6% on the news that dip-buyers moved into beaten-down semiconductor and hardware names following the sector's steepest one-day rout in 19 months.
The turnaround gained traction after President Donald Trump wrote on Truth Social that he is 100% in favor of artificial intelligence infrastructure, calling data centers "GOLD" and pledging to help states expand capacity, in comments carried by CNBC. That endorsement eased worries ignited by Democratic midterm victories and calls for data-center project halts.
Nvidia is down 5.2% since the beginning of the year, and at $178.95 per share, it is trading 25.2% below its 52-week high of $239.24 from October 2026. Despite the year-to-date decline, investors who bought $1,000 worth of Nvidia’s shares 5 years ago would now be looking at an investment worth $5,837.
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