Megaspeed inquiry pulls Nvidia deeper into geopolitical scrutiny

By Nathan Brooks

The New York Times reported that the Justice Department is conducting a criminal inquiry into Singapore data center company Megaspeed. Nvidia shares came off the lows after opening in oversold territory but remained 5% lower. The legal and governance questions now sit beside the stock move, with no demonstrated causal link.

What moved Megaspeed to the Justice Department?

The same Times report said the Commerce Department inquiry into Megaspeed moved to the Justice Department last year after Nvidia intervened. Nvidia general counsel Tim Teter contacted Commerce investigators after receiving permission from Jeff Kessler, who reports directly to Commerce Secretary Howard Lutnick.

The transfer came amid concerns that the Commerce investigation could be compromised. The Justice Department now conducts a criminal inquiry into Megaspeed, changing both the forum and the legal stakes.

What is Nvidia examining around Jensen Huang?

Nvidia’s board opened an investigation into whether CEO Jensen Huang had been targeted by a foreign intelligence effort. Separately, Huang disclosed that he had been unfaithful to his wife in connection with a relationship with Alice Huang. Media reports said U.S. intelligence agencies suspected Alice of spying for China.

CBS News reported that Huang will be the subject of a congressional briefing from the Trump administration, citing an interview with Congressman Hakeem Jeffries. The planned briefing puts the company’s leadership question into a congressional setting, while the board inquiry remains separate.

Bernstein analyst Stacy Rasgon rates Nvidia Outperform and sets a $400 price target. He said: “Nvidia is not an ordinary company and Jensen is not an ordinary CEO.” Rasgon also argued that Huang effectively is Nvidia, clearly sets the long-term strategy and direction and, with supposedly 60 direct reports, pulls most of the company’s strings himself.

In the show’s poll, 63% of readers and listeners said Huang would remain CEO with full board backing after the issue settles. About 23% expected him to step down, while the remainder split evenly between retirement with a succession roadmap and being forced out completely. The result measures audience sentiment, not a settled governance outcome.

Which other stocks moved on company news?

Outside the Nvidia story, three active stocks moved on operating results and corporate action. Their updates were conventional, although the DoubleDown transaction carried the clearest price tag.

• Lincoln Educational Services (LINC) rallied after reporting a 14.2% increase in student starts in Q3. The share move followed that operating update.
• Vir Biotechnology (VIR) rose after reporting positive results for a combination treatment. The treatment targets chronic hepatitis delta.
• South Korean game company DoubleU Games agreed to buy the DoubleDown Interactive (DDI) shares it does not already own. Its offer is $16.25 in cash for each U.S.-traded share, and DDI shares rose 15%.

How quickly is Jersey Mike’s expanding in London?

Jersey Mike’s Subs (JMKE) announced its first U.K. restaurant, a London shop steps from Oxford Circus and the chain’s first presence in Europe. The location is the first under a master franchise agreement with founder Peter Cancro to develop 300 restaurants across the U.K. and Ireland.

The company expects four London locations before year-end, with the second scheduled to open in mid-November on Baker Street. Four openings look more like a measured rollout than fulfillment of the 300-restaurant agreement.

The launch lineup includes “The Sign of Four Cheese,” “The Adventure of the Speckled Ham,” and “The Game Is Afoot-Long.” The names set the launch tone with some precision.

What will Wonder’s IPO price reveal?

Wonder has confidentially filed a draft S-1 for an IPO but has not set a share count or price range. Earlier this year, the food technology company raised $650 million at a $9 billion valuation.

After pivoting from mobile food trucks to micro food halls and ghost kitchens, Wonder expanded rapidly through aggressive M&A, including acquisitions of Blue Apron and Grubhub. Those deals put a multi-format restaurant business in front of prospective public investors.

Wonder’s next pricing test is whether that acquisition-built platform can support a public-market valuation near its earlier $9 billion private valuation. For Nvidia, the immediate commercial question is whether scrutiny of Huang weakens the founder-led control Rasgon described.