NVIDIA is resold after the market closes!!

📌 Summary of the 3 main factors causing NVDA to be sold and price to fall.

1. Monsoon News of the CEO's personal conduct and investigation from the executive board.

Nvidia's board of directors has appointed an external legal team to open a formal independent investigation.

Slate is attributed to reports of personal relationships and suspected targets of foreign intelligence networks, including news reports of relationships within the company.

Leading financial media outlets (such as WSJ, Bloomberg) reported that the Board of Directors is meeting urgently and considering plans to appoint an interim CEO or removal guidelines, raising serious concerns for the stability and vision of a company that has relied on Jensen Huang for 30 years.

2. Stability pressure and chip export smuggling monitoring

The U.S. Department of Justice and regulators raised the level of investigation of suspected cases of smuggling AI chips to China through agents in Asia.

Markets worry that the U.S. government may enforce further austerity measures, which could hurt sales and could result in Nvidia cutting off inventory (Write-down) in the Asian region.

3.Wall Street downgrades & AI slowdown concerns

Several financial institutions and analytics bureaus downgraded their price targets and investment recommendations (Downgrade).

The market began questioning the investment returns (ROI) of its major customers (Hyperscalers) that it might start delaying orders for new squirrel chips ahead of earnings reports.