Nvidia’s Sell-Off Is Accelerating. What’s Next for the Stock?

KEY TAKEAWAYS

Yesterday wasn’t a great one for Nvidia. Today wasn’t much better.

Shares of the chip giant finished Tuesday down 5.5%, falling for a second day this week to levels last seen in the spring. As of Tuesday’s close of $168.47 recent prices around $168, they’re off about 10% since Friday’s close, with investors digesting news that CEO Jensen Huang is under investigation for reported connections to a Chinese spy and working through broader bearishness sparked in part by fresh rate-hike worries.

The latest move has the stock off some 18% this month. What’s next for Huang—and Nvidia (NVDA)—remains a moving target.

President Donald Trump yesterday said the FBI was looking into the affair, adding that he had spoken with Huang since the allegations were first reported. On prediction markets, traders seem to think he’s safe for now, though the perceived odds of him departing have moved slightly higher since yesterday on Kalshi.

That may leave investors in an uncertain position for some time. Bank of America analysts yesterday referred to the latest events as an “overhang, not yet an earnings event.” The analysts suggested three scenarios, listing ” 1) containment, with leadership continuity and no material findings allowing fundamentals to regain focus; 2) prolonged uncertainty, pressuring valuation before earnings; 3) escalation, with adverse findings, leadership disruption or tighter restrictions requiring earnings reassessment.”

Some market participants used yesterday’s action to build stakes. Ark Investment Management funds, including the Ark Innovation ETF (ARKK), together bought more than 90,000 shares on Monday, according to trade disclosures.

Nvidia is set to report its latest results next week.

This story has been updated since it was first published to reflect the close of trading.

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