--- title: Nvidia Stock Falls for a Second Day After a Report on Chip Shipments to Chinese Firms description: Nvidia fell 4.3% on Monday as other AI stocks rebounded, then dropped again on Tuesday after a report on $7.5 billion of its chips reaching China. author: Darie Nani (Editor-in-Chief) date: 2026-11-10T18:04:41.672Z updated: 2026-11-10T18:04:41.686Z canonical: https://www.sovereignmagazine.com/article/nvidia-stock-falls-second-day image: https://cdn.nanimediahouse.com/nvidia-stock-falls-second-day.webp categories: Artificial Intelligence content_type: News region: United States publication: Sovereign Magazine about: - type: Organization name: Nvidia description: Nvidia is a US technology company that designs the graphics processors and AI chips used in data centers, gaming and cloud computing. --- Nvidia stock fell for a second day on Tuesday, after closing 4.3% lower at $178.67 on Monday while most of the chip and AI stocks that had dropped with it in [last week's sell-off](https://www.sovereignmagazine.com/article/anthropic-ipo-data-centers-midterms) rebounded. Nvidia shares were up in early trading before the market opened on Tuesday. The US government then reported that consumer prices rose 0.4% in October, more than the 0.3% economists had forecast, and The Information published a report on Nvidia chip shipments to Chinese firms. Nvidia opened 2.6% lower, and by early afternoon in New York it was down about 6.2% at $167.62, about four times the 1.6% fall in the PHLX Semiconductor index, which tracks 30 large chip companies. The Nasdaq Composite was down 1.4%, while Broadcom was up 2.4%. In a memo to staff on Sunday, Jensen Huang, Nvidia's chief executive, admitted being unfaithful to his wife. The board is [investigating whether he was targeted by a foreign intelligence service](https://www.sovereignmagazine.com/article/nvidia-jensen-huang-investigation). ## Nvidia Opened Lower After a Report on Chip Shipments to Chinese Firms US officials have concluded that [Alice Huang](https://www.sovereignmagazine.com/article/who-is-alice-huang-megaspeed), who has worked as an executive at the Singapore company Megaspeed, is a Chinese intelligence asset, the New York Times has reported. She has not been charged, and China denies that she is a spy. On Tuesday The Information reported, citing two people who know her, that her relationship with Jensen Huang helped facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese firms since 2023, about 240,000 H100, H200 and some A100 processors. The report describes a network of companies across China and Singapore that Alice Huang's husband and sister built to acquire Nvidia chips. At its center was Shanghai Century Litong, which became one of Nvidia's preferred cloud partners in 2023, with priority access to its chips. Century Litong rented out computing capacity and ran data centers using Nvidia chips, "including some barred from sale to China", and some of the chips ended up serving Alibaba, Tencent and smaller Chinese AI labs. When orders for export-restricted chips stalled, according to the report, Alice Huang secured supplies through her ties to Nvidia and its distributors, and she used her relationship with Jensen Huang to bolster her credibility while keeping her own role vague and avoiding a paper trail. The report does not say that Jensen Huang knew of or approved any of this. Reuters said it could not independently verify the report, and Nvidia did not immediately respond to its request for comment. Century Litong said it obtained its partner qualifications and business resources lawfully, and it denied doing business with Alice Huang. ## Nvidia Stock Fell on Monday While Other Chip and AI Stocks Rebounded Nvidia rose 2.8% on Friday, before Huang's memo and the board's announcement, when the PHLX Semiconductor index gained 4.2%. On Monday the index rose 6.9% and the S&P 500 had its best day since April, while Nvidia fell. About 459.1 million Nvidia shares changed hands, the most in a single day in more than three years. AMD, Nvidia's main rival in AI chips, closed 13.3% higher at $508.58 on Monday after Oppenheimer analyst Rick Schafer upgraded the stock to Outperform from Market Perform with a $600 price target. Other chip and AI stocks that had lost at least 9% on 5 November also rebounded. SpaceX, which took over Elon Musk's AI company xAI in February, gained 5.8%. Broadcom, which designs custom AI processors and networking chips, rose 8.8%, Nebius, which rents out computing power to AI developers, 9.2%, Marvell Technology, another maker of data center chips, 9.5%, and Vertiv, which makes power and cooling equipment for data centers, 9.6%. Among the large chip and AI stocks, only Nvidia and the server maker Super Micro Computer closed lower. By early afternoon on Tuesday Nvidia was down about 10% from its Friday close of $186.64, a loss of about $460 billion in market value over the two days. ## Bank of America Analysts Say the Question Is Whether the Fallout Is Limited to Nvidia > "We would not equate allegations with proven business damage." > — Bank of America analysts "The investment debate is whether this remains company-specific or triggers restrictions and disruption across AI infrastructure," Bank of America's analysts wrote on Tuesday. In a note on Tuesday, Dan Ives of Yorkville Ives & Co wrote, "Right now the Street and investor chatter is assigning roughly a 15% chance he is removed as CEO of Nvidia." Ives expects the board's investigation to take four to six weeks, and he has said Nvidia would be worth 25% to 30% less without Huang. On Monday, Bernstein's analysts said the overhang on Nvidia's shares "will be around for a while", and Matt Bryson of Wedbush said losing Huang would be a major negative for Nvidia, given his "hands-on operating style". Citi's Atif Malik offered no view of his own, noting, "The company has stated that Mr. Huang will remain CEO while the investigation proceeds." Nvidia [reports results for its third quarter](https://nvidianews.nvidia.com/news/nvidia-sets-conference-call-for-third-quarter-financial-results-6928873) on 17 November, with a call for analysts at 5pm Eastern time. Huang has until Wednesday to reply to the three Republican House committee chairs who have asked him to attend a closed-door briefing on 18 November. ## FAQ **Q: Why is the Nvidia stock falling?** Nvidia has fallen on both trading days since Huang's memo to staff and the start of the board's investigation. It closed 4.3% lower on Monday while most other chip and AI stocks rebounded from the 5 November sell-off. On Tuesday it fell again after US consumer prices rose more than forecast and The Information reported that Alice Huang's relationship with Jensen Huang helped facilitate at least $7.5 billion of Nvidia chip shipments to Chinese firms, a report that has not been independently verified. **Q: Will Nvidia stocks recover?** No one can say yet. Bank of America's analysts said the allegations are not the same as proven damage to Nvidia's business, and Dan Ives expects the board's investigation to take four to six weeks. Nvidia's third-quarter results are due on 17 November, and Huang has been asked to attend a closed-door briefing with three House committee chairs the next day. **Q: Is Nvidia still a good stock to buy?** Dan Ives of Yorkville Ives & Co has said Nvidia would be worth 25% to 30% less without Huang, and he says investors and analysts put the chance of Huang's removal at roughly 15%. Bank of America's analysts said the question for investors is whether the problem is limited to Nvidia or leads to restrictions and disruption across AI infrastructure.