Nvidia and its $1.7 Trillion loss. What holds ahead for the AI Chip Manufacturing Company

12 Nov 2026 , 02:09 PM

Nvidia shares have suffered severe losses over the past week as concerns mount about the leadership of the chip giant, including allegations of espionage with a Singapore based customer and fears over its exposure to China. Nvidia has fallen back from its near $5trn valuation to around $4tn as it moves closer to Microsoft (approx $3.96trn).

Nvidia Shares Slide From All-Time High

On November 10 Nvidia shares ended at $168.89 having fallen sharply from its intraday high on October 6 of $243.37 (-30.6%). The shares then traded higher during regular trade on November 11, rising 2.87% to finish the session at $173.73 but fell again in after hours trading to $158.76.

There are now concerns that investor confidence in the world leader in AI chips is fading. Uncertainty Over Jensen Huang’s Leadership Reports that the Nvidia board will be holding a meeting about Jensen Huang’s role as CEO of the company has caused uncertainty.

Some are saying that there are internal candidates, such as Chief Financial Officer Colette Kress and senior executive Ian Buck. Arm chief executive Rene Haas, a former Nvidia exec, is also seen as an option. Some are saying they are looking to make Kress acting CEO. There’s also talk of a dual CEO setup, with Kress handling the business and finance side and Buck handling products and tech.

Fears Over Alleged Espionage By China

A further concern is that Beijing might have been trying to get access to Nvidia’s sophisticated AI chips. The FBI are reportedly investigating concerns about one of the executives at Megaspeed, an Nvidia customer based in Singapore, Alice Huang. A private investor has also launched legal action against Nvidia and Jensen Huang in a Californian court, saying the company had failed to disclose information about its relationship with Megaspeed and was lying. They want to launch a class action lawsuit on behalf of shareholders that bought the shares between October 9 and November 8.  A matter that will be investigated.

Short Seller Highlighted China Exposures

Culper Research highlighted concerns about Nvidia’s exposure to China and its relationship with Alice Huang in a research note back in May. They said that up to 20% of Nvidia’s compute revenues could be traced back to China informally. These claims have not been verified. This adds another layer of uncertainty for investors.

Wall Street Maintains Positive Sentiment

Most Wall Street analysts have kept their Buy ratings on the stock, with most saying that underlying fundamentals are strong. Wells Fargo did downgrade their price target to $300 from $315 and took the stock off their top picks. Nvidia’s latest results were strong with quarterly revenues up 106% year-on-year to $96.2bn. Around $108bn is expected for the current quarter.

AMD and Broadcom were up around 3% at the start of the week.

Nvidia Earnings To Be Key

Next week, Nvidia’s quarterly results will be key for investors. This could give more insight into how much demand there is for AI chips, growth in revenues and whether they can continue to dominate the market. Investors will also be watching what happens with Jensen Huang’s leadership, the FBI investigation, regulatory fears over China and legal issues.

Nvidia does have a big opportunity to grow from AI long term, but uncertainty over leadership and geopolitical issues are causing increased volatility in the short term.

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