Gold gains as oil extends fall and Nvidia probe rattles markets

According to Reuters, Nvidia's board is investigating whether CEO Jensen Huang was the subject of a foreign intelligence operation. This comes after a media report suggesting Huang had an intimate connection with a Chinese businesswoman who allegedly transmitted information to Beijing.

RYU YOUNG-HO, a senior analyst at NH Investment & Securities, stated that the U.S. government had been aware of the situation for several months, so the immediate effect on the company is likely to be minimal. However, RYU believes a prolonged investigation or internal review could lead Nvidia to delay its investment decisions, potentially impacting the semiconductor industry.

Gary Black, an investor who manages money for the Future Fund LLC, doubts that Jensen Huang will continue as CEO of Nvidia. Black predicts short-term pressure on the stock of the second most valuable company in the world due to the lack of a natural successor within the company. Black also cautioned that the code of conduct and judgment of Huang will be scrutinized, potentially resulting in his removal, even if no crime has been committed.

Black expressed hope that the situation is merely an affair and not a threat to national security. He acknowledged the positive impact Huang has had on the world but emphasized the importance of addressing any potential security risks.

Other analysts and figures echoed similar sentiments, emphasizing the timing of the investigation and its potential long-term impact on Nvidia and the tech sector. They also noted that while the investigation may cause some uncertainty, it is unlikely to significantly alter Nvidia's long-term prospects unless it leads to changes in leadership.