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Nvidia is facing a test of “institutional confidence”, warns Waleed Said, technical analyst at brokerage GivTrade:
Nvidia’s 5.47% decline to $168.89, extending its losses for a second consecutive session, has transformed an executive controversy into a test of institutional confidence. Approximately $430 billion in market value has reportedly disappeared across the two sessions as investors confront allegations involving CEO Jensen Huang’s personal relationship with a businesswoman suspected of connections to Chinese intelligence.
Independent directors have retained Wachtell Lipton, including former prosecutor Joon Kim, to investigate whether the relationship involved foreign intelligence activity or compromised company information. The allegations remain under investigation, and Nvidia says it has no reason to believe secrets or national security were compromised.
“The situation with Nvidia is another reminder that we have to stay diligent.
“National security is part of this economic conversation because economic security is national security. And so, what we’re doing with China is bumpy right now.”
Continue reading…Rolling coverage of the latest economic and financial newsNvidia is facing a test of “institutional confidence”, warns Waleed Said, technical analyst at brokerage GivTrade:Nvidia’s 5.47% decline to $168.89, extending its losses for a second consecutive session, has transformed an executive controversy into a test of institutional confidence. Approximately $430 billion in market value has reportedly disappeared across the two sessions as investors confront allegations involving CEO Jensen Huang’s personal relationship with a businesswoman suspected of connections to Chinese intelligence.Independent directors have retained Wachtell Lipton, including former prosecutor Joon Kim, to investigate whether the relationship involved foreign intelligence activity or compromised company information. The allegations remain under investigation, and Nvidia says it has no reason to believe secrets or national security were compromised.“The situation with Nvidia is another reminder that we have to stay diligent.“National security is part of this economic conversation because economic security is national security. And so, what we’re doing with China is bumpy right now.” Continue reading…
