NVDA plunged as much as 8% today amid the board's investigation into Jensen Huang and his connection to Alice Huang, who was identified as having been recruited by Chinese intelligence. The CEO admitted to infidelity in an internal memo.
But look at the heatmap: AMD, MU, ASML, and MSFT are in the green, the Dow is up 2%, and the S&P is up 2.3%. This is idiosyncratic risk, not fear of the AI cycle. The problem isn't the affair; it's the company's geopolitical and governance exposure, given that it's the heaviest-weighted company in the S&P.
And keep in mind: NVDA had already been on a huge rally; the news is the perfect excuse for those who wanted to take profits to do so without looking like panic sellers. For your framework: a bearish gap driven by governance concerns while the sector is in the green is an anomaly with no clear direction. No action.
#Nvidia $NVDAB #AMD
But look at the heatmap: AMD, MU, ASML, and MSFT are in the green, the Dow is up 2%, and the S&P is up 2.3%. This is idiosyncratic risk, not fear of the AI cycle. The problem isn't the affair; it's the company's geopolitical and governance exposure, given that it's the heaviest-weighted company in the S&P.
And keep in mind: NVDA had already been on a huge rally; the news is the perfect excuse for those who wanted to take profits to do so without looking like panic sellers. For your framework: a bearish gap driven by governance concerns while the sector is in the green is an anomaly with no clear direction. No action.
#Nvidia $NVDAB #AMD
