It was a great day for stocks. Just not Nvidia’s.
\n\nThe company’s shares slid 4.2% on Monday after it announced that it had opened an investigation into CEO Jensen Huang’s relationship with a woman who U.S. intelligence agencies say is a Chinese spy.
\n\nDespite Nvidia’s importance to the AI trade, the news affected almost no other stocks. The Nasdaq 100, which tracks the top tech stocks at the Nasdaq exchange, soared 3.4%. The broader S&P 500 rose 2.3%. The Dow Jones Industrial Average rose more than 1,100 points. Stocks were also propelled higher by a more than 4% drop in oil prices Monday on news that U.S.–Iran talks were continuing.
\n\nNvidia’s peers, such as AMD, Qualcomm, Taiwan Semi and Intel, all rose along with the broader market. Nvidia was the biggest loser on the Dow and the S&P 500.
\n\nThe investigation has the potential to unsettle the entire AI boom, fueled by trillions of dollars of spending and investments, in part to purchase Nvidia’s cutting-edge AI chips. Nvidia’s drop wiped out almost $200 billion in value.
\n\nHuang, who founded the company more than three decades ago, admitted in a note to employees that he had been unfaithful to his wife.
Original source: https://www.nbcnews.com/