Monday I said NVIDIA's drop looked like the market pricing a Huang-specific governance risk rather than an AI-chip demand problem.

Monday I said NVIDIA's drop looked like the market pricing a Huang-specific governance risk rather than an AI-chip demand problem. Tuesday made that read harder to argue with.

Trump said he is highly unlikely to order fresh strikes on Iran if diplomatic efforts continue, and markets ripped. The Dow gained 1,104 points to 52,389.75, the S&P 500 rose 2.35% to 7,549.94, and the Nasdaq climbed 2.74%. The VIX fell 22.31%. Brent settled down 5.85% at $92.57 and WTI dropped 4.38% to $86.85.

Tech rebounded hard. AMD rose 13.2%, Broadcom 8.8%, Tesla 5.5%, and Amazon and Microsoft roughly 3% each. NVIDIA was the lone major tech decliner, down about 4.3%, its second straight session of company-specific selling while the board's independent investigation into reports that Jensen Huang was targeted by a foreign-intelligence effort continues.

That's two days in a row where neither a strong AI-chip tape nor a broad macro relief rally could pull the stock up. The market is treating this as an NVIDIA problem, full stop. I'd like to know how long that discount holds before investors hear something concrete from the board.

$NVDA

Sources:
Anadolu Agency (AA): https://www.aa.com.tr/en/americas/us-stocks-surge-at-close-as-tech-rebounds-oil-prices-tumble/4118084
Reuters via Metrobank Wealth Insights: https://wealthinsights.metrobank.com.ph/news/forex-dollar-slips-against-major-currencies-as-iran-talks-lift-risk-appetite

Not financial advice. For informational and educational purposes only.