The Philadelphia Semiconductor Index rose nearly 7%, and AMD gained 13%—the whole sector was celebrating. Yet Nvidia fell 4.27%, becoming the only one of the Magnificent Seven to finish in the red and shedding $190 billion in market value in a single day.
Nothing was wrong with the chips; the problem was the person. On November 8, Jensen Huang publicly admitted to being unfaithful to his wife, saying there was no excuse and that he was willing to take full responsibility. The board announced that same day that it was launching an independent investigation, and he said he would cooperate fully. At a White House press conference on the 9th, Trump said he had just spoken with Huang and believed he was “a very honest person.” Will Huang come through this scandal unscathed?
It’s a little alarming how a CEO’s private life can drag a stock down even as the rest of the sector moves in the opposite direction. What the independent investigation uncovers is what the market is really watching.
Nothing was wrong with the chips; the problem was the person. On November 8, Jensen Huang publicly admitted to being unfaithful to his wife, saying there was no excuse and that he was willing to take full responsibility. The board announced that same day that it was launching an independent investigation, and he said he would cooperate fully. At a White House press conference on the 9th, Trump said he had just spoken with Huang and believed he was “a very honest person.” Will Huang come through this scandal unscathed?
It’s a little alarming how a CEO’s private life can drag a stock down even as the rest of the sector moves in the opposite direction. What the independent investigation uncovers is what the market is really watching.