Nvidia shares drop amid FBI probe into CEO's alleged spy ties

Nvidia shares fell approximately 4% to 4.3% in recent trading, diverging from the broader tech sector as the company faces a federal investigation. The probe centers on CEO Jensen Huang's admitted relationship with a woman identified in media reports as Alice Wang, a former manager at Singapore-based Megaspeed. US intelligence agencies suspect Wang was recruited by Chinese intelligence to gather information connected to Nvidia, and the FBI is investigating whether she poses a national security risk. Reports indicate that at least $7.5 billion in Nvidia chip sales to China were processed through Wang's family business via Singapore, while other sources cite approximately $4.8 billion in purchases by Megaspeed over the last two years. Nvidia's board has launched an independent investigation but stated it has full confidence in Huang, who will continue to operate as CEO while a special counsel reviews the matter. Three House committee chairs have requested a closed-door briefing with Huang on November 18, the day after Nvidia's Q3 earnings call. Analysts are divided on the impact; Bank of America maintains a buy rating with a $350 target, while Bernstein's Stacy Reskin noted that "Jensen Huang is Nvidia." Some analysts, including Dan Murphy, estimate a 15% probability of Huang's removal, which could trigger a 25-30% stock drop. Despite the scandal, the stock trades at a P/E of 19 for the current fiscal year, leading some investors to view it as undervalued.