Nvidia’s pre-market trading on Monday looked a little awkward. It closed at $186.64 last Friday, then slipped to just above $180 before the market opened, down about 3.4%. Over the same period, TSMC rose more than 6% and SK Hynix gained nearly 5%. Money hasn’t left the AI supply chain; it has simply steered clear of this one name for now: $NVDA .
It started when Jensen Huang apologized in an email to employees over personal matters and also said the board had launched an independent investigation into national security concerns raised in media reports. Accounts differ on which country’s intelligence agency the parties involved may be linked to: some point to Beijing, others mention Singapore. For now, these claims remain at the level of reporting and hearsay and cannot be treated as fact. The board said there was no reason to believe confidential information had been leaked and reaffirmed its support for him as CEO.
The market is more focused on the timing. A closed-door briefing requested by three Republican House committee chairs is scheduled for November 18, the day after the Q3 earnings report. A common move among institutions is to first trim the premium attached to key individuals, then shift positions to supply-chain stocks with a cleaner narrative. That likely explains some of the strength in TSMC and Hynix. If the investigation remains limited to personal matters, the AI story should be largely unaffected. If it touches on customer channels and export controls, expectations for China-related business and valuation multiples will have to be reassessed.
One more reminder: on-chain proxy tokens such as NVDAB and the U.S.-listed NVDA are two different assets, with discrepancies in both pricing and liquidity. When using contracts to express a view, leverage can be amplified during an event window.
The earnings results themselves may also overshadow this issue. Over the next couple of days, first watch the wording used in the guidance when discussing China-related business, then see whether any lawmakers signal their views before or after the briefing.
It started when Jensen Huang apologized in an email to employees over personal matters and also said the board had launched an independent investigation into national security concerns raised in media reports. Accounts differ on which country’s intelligence agency the parties involved may be linked to: some point to Beijing, others mention Singapore. For now, these claims remain at the level of reporting and hearsay and cannot be treated as fact. The board said there was no reason to believe confidential information had been leaked and reaffirmed its support for him as CEO.
The market is more focused on the timing. A closed-door briefing requested by three Republican House committee chairs is scheduled for November 18, the day after the Q3 earnings report. A common move among institutions is to first trim the premium attached to key individuals, then shift positions to supply-chain stocks with a cleaner narrative. That likely explains some of the strength in TSMC and Hynix. If the investigation remains limited to personal matters, the AI story should be largely unaffected. If it touches on customer channels and export controls, expectations for China-related business and valuation multiples will have to be reassessed.
One more reminder: on-chain proxy tokens such as NVDAB and the U.S.-listed NVDA are two different assets, with discrepancies in both pricing and liquidity. When using contracts to express a view, leverage can be amplified during an event window.
The earnings results themselves may also overshadow this issue. Over the next couple of days, first watch the wording used in the guidance when discussing China-related business, then see whether any lawmakers signal their views before or after the briefing.