Nvidia Board Names Outside Counsel for Probe Into Huang Targeting Reports

Nvidia’s independent directors retained outside counsel Tuesday to investigate reports that CEO Jensen Huang was targeted by a foreign intelligence effort, as U.S. stocks retreated after Monday’s sharp chip rally.

The directors retained former acting U.S. Attorney Joon H. Kim and Wachtell, Lipton, Rosen & Katz to conduct the investigation. Nvidia’s board announced the probe on Nov. 8. A Nov. 6 report attributed the allegation to people briefed on U.S. intelligence; the board has announced no findings.

In its Nov. 8 statement, the board said it had “no reason to believe that either national security or NVIDIA secrets were compromised” and that Huang would cooperate. The investigation announcement does not establish that the alleged effort occurred.

At 4 p.m. ET (2100 UTC) Monday, Nov. 9, the PHLX Semiconductor Sector Index rose 7% and the Nasdaq-100 gained 3.4% to 27,907.63. The S&P 500 advanced 2.3% to 7,549.94, and the Nasdaq Composite climbed 2.7% to 25,253.14. Nvidia moved against the broader chip rally, falling 4.3% to $178.67, a $7.97 decline.

Monday’s broader market gains coincided with a 5.8% drop in Brent crude.

The advance did not last. A higher-than-expected inflation reading weighed on stocks Tuesday. At the 4 p.m. ET (2100 UTC) close, the Nasdaq Composite was down 0.7% and Nvidia had fallen another 5.5%.

The two-session reversal leaves the market-bottom debate unsettled. BitMine Chairman Tom Lee’s market-bottom view cited Monday’s gains and a return to a normal VIX term structure. Tuesday’s declines do not confirm a durable low, and the sequence does not establish that reports about Huang caused either day’s market moves.