Chip stocks rise despite Nvidia probe of CEO Huang

Chipmakers in Asia and Europe rose on Monday, Nov. 9, even though Nvidia shares fell after its board opened an independent investigation into CEO Jensen Huang. Investors treated the scandal as a problem for Nvidia's leadership, not a threat to the suppliers that make and assemble its AI hardware.

Taiwan's markets led Asia's gains. The Taiwan Weighted Index rose as much as 6.7%, pushed up by Taiwan Semiconductor Manufacturing Company ↗ 4.71% and Hon Hai Precision Industry, according to CNBC. In South Korea, Nvidia suppliers Samsung Electronics and SK Hynix ↗ 5.53% also climbed. In Europe, the Stoxx 600 technology index moved higher, led by ASML ↗ 6.97%, Be Semiconductor and ASM International, CNBC reported. Part of the rally was a rebound. Taiwan's benchmark had sold off on Friday, Nov. 6, and its National Stabilization Fund was then cleared to step into the market, Focus Taiwan reported.cnbc.com+1

Nvidia slides on leadership worries

Nvidia fell as much as 8% before paring losses to about 6%, which would erase more than $280 billion in market value, Reuters reported. The drop came while the S&P 500 ↗ 2.71% and Nasdaq Composite both opened more than 1% higher, The New York Times ↗ 4.46% reported.nytimes.com+1

On Sunday, Nvidia's board said a committee of independent directors, working with outside counsel, would investigate reports that Huang had been "the target of a foreign intelligence effort." The board added that it had "no reason to believe that either national security or NVIDIA secrets were compromised," ABC News reported. Huang admitted to an affair in a message to employees. "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," he wrote, Focus Taiwan reported.abcnews.com+1

U.S. intelligence officials believe the woman, Alice Huang, a former executive at Singapore-based Nvidia customer Megaspeed, passed information to Beijing, according to reports in the Times and Financial Times. The two are not related. China's foreign ministry called the "so-called Chinese spy narrative" unsubstantiated, CNBC reported, citing Reuters.cnbc.com

Suppliers seen as insulated

Officials and analysts in Asia played down the risk to supply chains. South Korean Vice Minister Ryu Je Myung reportedly said contracted deliveries of Nvidia graphics processors should go ahead without disruption, according to CNBC. Chang Chien-yi, president of the Taiwan Institute of Economic Research, said he did not expect "any major impact" on the AI supply chain, noting that many orders for the first half of 2027 have already been placed, Focus Taiwan reported.focustaiwan.tw+1

Analysts warned the calm may not last. Joachim Klement of Panmure Liberum said that if Huang's position became "endangered," Nvidia "might cut back on supporting other companies," which could spread to other chip stocks, CNBC reported. Nvidia will report third-quarter results on Nov. 17. The next day, Nov. 18, is the date three Republican House committee chairs proposed for a closed-door briefing with Huang, Yahoo Finance reported.cnbc.com+1