Jensen Huang affair weighs on Nvidia shares as other chip stocks rally
Nvidia bucked a broader tech rebound on Monday as investors weighed the fallout from the controversy surrounding CEO Jensen Huang. But analysts say the chipmaker's underlying business remains strong.
Nvidia shares continue to suffer amid the fallout from CEO Jensen Huang's alleged affair with a Chinese executive believed to be a spy. The chipmaker's stock fell 4.3% on Monday, wiping out nearly $190 billion in market value. Investors are concerned that the controversy could lead to increased scrutiny of Nvidia's technology transfers, compliance with U.S. export controls, and customer relationships in China and Southeast Asia.
While some analysts, like Phillip Securities Research's Chong Yik Ban, view the decline as a relief rally following a recent downturn, others, such as Briefing.com's Patrick O'Hare, believe the issue is limited to Nvidia and not indicative of broader technology sector problems.
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