Key takeaways
- Nvidia stock rebounds 3% following two-session market selloff
- Independent directors appoint outside counsel to investigate Huang allegations
- Congressional pressure intensifies ahead of Nvidia's November 17 earnings
Nvidia stock rebounded approximately 3.2% on Wednesday, November 11, recovering part of a two-session selloff that erased roughly $430 billion in market value as scrutiny of CEO Jensen Huang intensified.
Shares traded near $174.29 after falling 4.3% Monday and another 5.5% Tuesday. The recovery came despite growing congressional pressure and an independent board investigation into allegations that Huang was targeted by a foreign intelligence operation.
The company's November 8 board statement confirmed an inquiry overseen by independent directors, while emphasizing that Nvidia has no reason to believe confidential information or US national security was compromised.
Nvidia Board Investigation Expands as Congress Demands Answers
Nvidia's independent directors have retained former federal prosecutor Joon H. Kim and law firm Wachtell, Lipton, Rosen & Katz to investigate the allegations involving Huang and Alice Huang, a former executive at Singapore-based cloud computing company Megaspeed.
Reports have alleged that Alice Huang maintained a personal relationship with Nvidia's CEO while providing information to Chinese intelligence. Those allegations remain under investigation, and no finding has established that Jensen Huang knowingly disclosed company secrets or violated export restrictions.
The expanded inquiry follows Nvidia's earlier board investigation announcement, which initially raised questions about executive oversight and leadership stability.
Separately, three Republican House committee chairs have requested a private briefing with Huang on November 18. Their official congressional letter asks him to respond by November 11 or propose another date.
House Foreign Affairs Chairman Brian Mast has also raised the possibility of a subpoena if Huang refuses to cooperate. However, no subpoena has been confirmed, and the requested briefing is not itself evidence of wrongdoing.
Nvidia Shares Recover as AI Infrastructure Stocks Rally
Wednesday's rebound coincided with renewed buying across artificial intelligence companies after CoreWeave reported stronger-than-expected earnings.
The Nvidia-backed cloud provider generated $3.66 billion in quarterly revenue, up 168% year over year, while its backlog reached $132.5 billion. The results strengthened confidence in AI infrastructure demand despite ongoing financing concerns.
The positive reaction to CoreWeave's earnings helped semiconductor shares recover, suggesting investors remain willing to support companies demonstrating strong AI-related demand.
However, Nvidia faces company-specific uncertainty beyond the broader industry correction.
Bank of America recently removed Nvidia from its preferred US stock list, while Wells Fargo reduced its NVDA price target from $315 to $300. Both firms maintained positive ratings despite growing governance concerns.
Meanwhile, semiconductor valuations have already declined sharply, with Wells Fargo estimating a 38% correction from June highs.
Nvidia Earnings and China Export Rules Become Next Tests
Nvidia is scheduled to report fiscal third-quarter earnings on November 17, just one day before the proposed congressional briefing.
Its previous results showed quarterly revenue of $96.2 billion, including approximately $89 billion from data centers. The company projected roughly $108 billion in revenue for the following quarter, underscoring continued demand for advanced AI processors.
Yet Nvidia's exposure to US-China technology restrictions remains another source of uncertainty.
Lawmakers are renewing efforts to strengthen AI chip export controls, adding to concerns that tighter regulations could affect Nvidia's international sales and the wider technology valuation reset.
