Stock Market Today, Nov. 10: Nvidia Stock Plunges 5.5% as CEO Scandal Overshadows Its Upcoming Earnings Report

Résumé détaillé

Nvidia shares extended their sell-off as an investigation involving CEO Jensen Huang raised fresh concerns about corporate governance, leadership uncertainty, and the AI chipmaker's future.

Nvidia (NASDAQ:NVDA), the leading manufacturer of artificial intelligence (AI) chips, plunged 5.52% on Tuesday, closing at $168.80 as mounting controversy surrounding CEO Jensen Huang rattled investors. Reports of a potential foreign intelligence operation involving Huang have prompted an independent board investigation and raised concerns about corporate governance and regulatory scrutiny. This comes at an inopportune time as Nvidia's earnings report is scheduled for November 17.

Trading volume surged to 420.8 million shares, more than three times its three-month daily average of 127.2 million, highlighting the intensity of the sell-off. Shares have now declined for two consecutive sessions as investors weigh the unfolding investigation against Nvidia's long-term AI growth prospects.

Broader equity markets also retreated on Tuesday, although Nvidia's losses significantly outpaced the major indexes. The S&P 500 (SNPINDEX:^GSPC) declined 0.38% to 7,521, while the tech-heavy Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.74% to 25,066 as hotter-than-expected inflation data weighed on investor sentiment.

However, Nvidia's semiconductor peers fared considerably better. Advanced Micro Devices (NASDAQ:AMD) gained 1.30% to $515.21, while Broadcom (NASDAQ:AVGO) climbed 3.91% to $331.98. The divergence suggests Nvidia's steep sell-off was driven more by company-specific concerns than a broader reassessment of AI chip demand.

Nvidia's upcoming November 17 earnings report will be an important test of whether its underlying business can overcome the recent controversy. Investors will be watching data center revenue, profit margins, and management's guidance for signs that hyperscaler spending on AI infrastructure remains robust heading into 2027. Strong results could help restore confidence in the company's long-term growth prospects.

However, investors shouldn't underestimate the importance of Jensen Huang's leadership.

For now, Nvidia's competitive position in AI computing remains…

The…

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