Nvidia falls more than 6% on Wall Street, briefly ceding its second place in global capitalization to Microsoft
Nvidia continued to decline on Tuesday on the New York Stock Exchange, penalized by the alleged Chinese espionage affair targeting its boss, Jensen Huang.
The American semiconductor giant Nvidia continued to suffer on Tuesday from the alleged Chinese spying scandal involving its boss Jensen Huang, the group having briefly lost its place as the second largest capitalization in the world to the benefit of Microsoft. Around 5:40 p.m. GMT, Nvidia shares fell 6.81% to $166.51 on the New York Stock Exchange. Since the affair broke this weekend, the company has seen more than $400 billion in market capitalization soar, in a context also marked by concerns about the artificial intelligence (AI) sector.
Under the effect of its fall on the stock market, Nvidia temporarily lost its rank of second largest capitalization in the world to the benefit of Microsoft. Both companies are currently trading just below $4 trillion while Apple remains well in the lead with a market valuation of over $5 trillion. Nvidia has not held such a low position in this ranking since 2025.
The “cornerstone” of AI shaken The group has been in turmoil since its emblematic boss, Jensen Huang, admitted on Sunday to an affair with a Chinese executive whom American intelligence suspects of working for Beijing, which denies. The chip specialist and Jensen Huang are now the target of a complaint in the United States accusing them of deception. The class action procedure, initiated Monday by a Los Angeles law firm, accuses them of having hidden from investors or downplayed information on the links between Jensen Huang and his mistress.
“Many financial commentators believe that this is a personal problem and that Jensen Huang can be replaced,” observes Trade Nation analyst David Morrison in a note. “But the consequences could be much greater than that. » “Nvidia is the cornerstone of the billions of dollars invested in the construction of infrastructures dedicated to artificial intelligence,” recalls the expert.
Especially since this scandal breaks out at a time when the AI sector is in upheaval on the stock market, in particular because of the colossal sums swallowed up to make cutting-edge models work. The victory of the Democratic Party in the mid-term elections in the United States, with the prospect of tougher regulations for data centers - essential to the development of AI -, adds to the tension.
Machine-translated from French
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- Le Figaro10 Nov, 19:06
| Publisher Le Figaro (established tier) | +76 |
| Total | 76 |
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