Nvidia pares gains after Jensen Huang's affair reportedly enabled $7.5 billion in China chip shipments
NVDA•Nvidia shares rose 0.3% premarket after a report said Jensen Huang's ties to Alice Huang facilitated at least $7.5 billion in chip sales to China. The shares had gained as much as 2.5% earlier, after falling 4.3% on Monday.
1. Report on China sales
Jensen Huang's ties to Alice Huang facilitated at least $7.5 billion in Nvidia chip sales to China, The Information reported. Nvidia did not immediately respond to a request for comment.
2. Investigation concerns
Nvidia shares fell 4.3% on Monday after the company said it had launched an investigation into whether Huang was targeted by a foreign intelligence operation, following reports alleging ties to a Chinese businesswoman accused of passing information to Beijing. Morningstar said the investigation and incidents may lead to Huang's ouster, which it said could bring less AI dealmaking and financing, greater regulation and more political backlash around artificial intelligence.
3. Analyst views
Morningstar expects Nvidia's major customer segments, including hyperscalers, neoclouds and enterprise clients, to maintain orders despite uncertainty about Huang's position. Of 64 brokerages, 61 rated Nvidia "buy" and three rated it "hold"; the median price target was $315. Nvidia shares were down more than 4% year to date as of the previous close.
