Nvidia stock drops, even as those of rivals such as Intel and AMD rise.

  • “The so-called Chinese spy allegation is unsubstantiated,” China’s Foreign Ministry spokesman Guo Jiakun said.
  • Nvidia CEO Jensen Huang admitted to an illicit affair with a suspected Chinese spy, and the company has launched an investigation.
  • Some analysts believe that the incident could have far-reaching consequences, including a near-term overhang on NVDA stock and Huang ultimately losing his CEO title. 

Nvidia Corp. (NVDA) shares dipped 5% in early premarket trading after CEO Jensen Huang admitted to having an illicit relationship with a person suspected to be a U.S. spy and said the company’s board had launched an investigation.

The news triggered modest gains in other chip stocks, such as Intel (INTC) and Advanced Micro Devices (AMD). China quickly rebuked allegations of Beijing’s involvement in the controversy.

“The so-called Chinese spy allegation is unsubstantiated,” China’s Foreign Ministry spokesman Guo Jiakun said at a regular press briefing in Beijing, Bloomberg reported. “It is nothing but smears against China,” he added.

The episode might complicate the Xi Jinping-Donald Trump summit at an Asia-Pacific Economic Cooperation in Shenzhen next week, according to the report.

Some analysts believe that the incident could have far-reaching consequences, including a near-term overhang on NVDA stock and Huang ultimately losing his CEO title. 

President Donald Trump, billionaire executive Elon Musk, and Bill Ackman have come out in support of Huang. Nvidia will likely face a barrage of questions on the issue at its upcoming earnings report on Nov. 17.

Nvidia’s Seoul Events In Focus

On Monday, Nvidia, SK Telecom and Korean chip startup Rebellions announced a partnership to jointly develop sovereign AI infrastructure, based on Nvidia’s NVLink Fusion technology.

Madison Huang, a senior director at Nvidia and the daughter of Jensen Huang, had initially planned to visit ​Rebellions in South Korea and hold a question-and-answer session with Kakao Mobility but Rebellions said the event was canceled due to "unavoidable internal circumstances at Nvidia," according to Reuters.

Nvidia AI Day Seoul, a two-day event ​expected to draw about 2,000 ⁠participants, will proceed as planned, Reuters reported, citing South Korean media.

Retail View On NVDA

On Stocktwits, the retail sentiment for NVDA climbed multiple points higher in the ‘extremely bullish’ zone. “$NVDA a ceo with drama is golden dip buy; sell the news buy the dipping,” said a trader.

Another wrote: “$NVDA everything will be fine. Level heads prevail. Best CEO, best chips in the world. Just another buy the dip moment.”

Year to date, Nvidia shares are up 0.3%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<