NVIDIA Falls 4% as Huang Probe Tests $108 Billion Guidance

By Sophie Lindqvist

NVIDIA shares fell 4% to $170.67 in early trading on November 10, 2026, extending a second straight day of selling over a board investigation into CEO Jensen Huang. The November 9 close was $178.67, and the stock also declined that day after the probe became public.

Advanced Micro Devices rose 3% to $521.98. Broadcom also gained 3%, reaching $328.29. Both chipmakers rallied on November 9 as investors rotated toward NVIDIA rivals. Mixed trading elsewhere in the sector suggests money moved between semiconductor stocks rather than leaving the group.

What does the board investigation examine?

NVIDIA said on November 8 that a committee of independent directors would investigate Huang. The Financial Times and The New York Times reported that U.S. officials believed Huang had a relationship with a Chinese woman recruited to spy for China. Public evidence has not established those allegations.

Huang told employees he had an extramarital affair and apologized. The board said it “has no reason to believe national security or company secrets were exposed.” NVIDIA and Huang now face lawsuits in the United States over the matter.

Yale professor Jeffrey Sonnenfeld put Huang’s odds of remaining CEO at 50-50. Former Securities and Exchange Commission chair Gary Gensler framed the central issue as whether shareholders were misled. The inquiry combines personal conduct, an unproven spying allegation and possible exposure of government or company information. The report gives no findings, timetable or conclusion.

This matters because NVIDIA sells a broad artificial-intelligence platform under one of the industry’s most visible chief executives. A leadership interruption could affect customers, employees and financing even if the board finds no disclosure of secrets. That risk remains separate from NVIDIA’s reported sales and supply commitments.

Does NVIDIA’s operating strength offset governance risk?

NVIDIA reported Q2 FY2027 results on August 26. Revenue reached $96.22 billion, up 105.8% year over year. Data Center revenue reached $89.02 billion. Management guided Q3 FY2027 revenue to $108 billion, plus or minus 2%.

On the same day, NVIDIA disclosed that supply commitments had surged to $279 billion. Most of that total covered memory tied to the Vera Rubin platform. Management also said NVIDIA had invested nearly $50 billion in frontier artificial-intelligence labs. These are large committed or invested sums, not recognized revenue.

The bullish case also rests partly on demand that exceeds supply, according to the report. On the August 26 earnings call, Huang said: “We’ve got a huge year coming up next year, and it’s going to be pretty extraordinary.” His forecast offers direction, but no capacity figure, delivery schedule or product-level breakdown accompanies it. Strong demand can support earnings while the board investigation still weighs on the shares.

How do AMD and Broadcom compete differently?

• NVIDIA: Management calls the offering an entire AI factory platform. It combines graphics processing units, processors, networking, systems and software that customers can use in any cloud. The CUDA ecosystem helps keep developers building on NVIDIA hardware. On the August 26 call, Huang described coverage of the full AI life cycle, from data preparation and pretraining through agentic inference.
• AMD: The company competes most directly in AI accelerators. Instinct graphics processing units combine with EPYC server processors in Helios rack-scale systems. AMD also offers the open ROCm software stack to developers as a counterweight to CUDA.
• Broadcom: The company designs custom AI accelerators for hyperscale cloud customers and networking chips for large clusters. Its infrastructure software segment, built largely through the VMware acquisition, creates revenue outside semiconductors.

The structures create three distinct routes into AI infrastructure. NVIDIA emphasizes a vertically broad platform and proprietary developer software. AMD pairs accelerator and processor sales with an open software alternative. Broadcom combines custom chip design, cluster networking and infrastructure software. The source provides no process node, wafer size, accelerator throughput, pricing or named customer allocation for comparison. Consequently, the 3% gains at AMD and Broadcom show investor rotation, not proof of superior product performance.

What will decide the next move in NVIDIA’s stock?

Two near-term events stand out. The independent directors’ committee must determine what its investigation finds. NVIDIA’s upcoming earnings report will test whether customer demand supports its guidance. The source gives no date for either outcome.

Macro conditions add pressure. The October Consumer Price Index rose 0.4% month over month. Higher-than-expected inflation weighed on rate-sensitive growth stocks and renewed debate over Federal Reserve rate hikes. Bears cite the lawsuit, possible leadership change and inflation reading. Bulls cite demand above supply and Huang’s forecast.

The report takes a conservative position until the board review concludes. NVIDIA’s operating momentum and governance risk are pulling the stock in opposite directions. The next measurable test is whether Q3 revenue reaches the $108 billion guide while the directors resolve Huang’s status; demand supports the first question, while customer and employee confidence still depends on the second.