Nvidia Shares Rise in Pre-Market After Senator Calls for Huang's Resignation

Nvidia (NVDA) shares rose more than 5% before the market opened on November 11, partially recovering from a 5.47% drop the previous day. Later, Reuters reported an increase of about 3.7%. Between November 9-10, the company's market capitalization decreased by approximately $430 billion. The rebound occurred amid a general rise in the tech sector, so attributing it solely to news about the company's management is incorrect.

The day before, Republican Senator Kevin Cramer called for Nvidia CEO Jensen Huang to resign due to alleged blackmail risk. "I just think he’s got to go," the senator told Politico. The reason was reports of Huang's relationship with a woman whom U.S. authorities, according to media, suspect of ties to Chinese intelligence. The woman's involvement in espionage has not been proven, and China has denied the accusations. Nvidia's board of directors has initiated an independent investigation and stated that there is currently no reason to believe the company's secrets or U.S. security have been compromised.

November 11 is the deadline for Huang to respond to an invitation from three U.S. House of Representatives committees. Lawmakers proposed a closed briefing on November 18 regarding potential threats and the protection of Nvidia's technologies. Congressman Brian Mast suggested issuing a mandatory subpoena if the company's leader does not respond to the request. Meanwhile, the board of directors continues to support Huang. Congress is also discussing restrictions on the supply of advanced chips to China.

The next event will be Nvidia's quarterly earnings report on November 17. According to OptionCharts, the 30-day implied volatility of the shares reached 59.3%, reflecting increased expectations of price fluctuations. This figure is expressed on an annual basis, does not determine the direction of stock movement, and does not guarantee the realization of specific forecasts.