Nvidia CEO Probe Adds Risk, but AI Boom Persists on Loose Policy

Nvidia's board has opened an independent investigation into CEO Jensen Huang over his relationship with an executive at a customer company, whom U.S. intelligence believes is a Chinese intelligence asset. Nvidia's stock has fallen 23% from its October 28 high of $220. The investigation became public on October 29, triggering a broad AI selloff. Alphabet suffered its worst trading day since 2004, Intel fell 29%, and chip stocks dropped 12% in a single day last Thursday, with the Nasdaq down 5.5% and Nvidia down 9%. Despite the turmoil, analysts suggest the AI boom may continue due to loose monetary policy. The selloff has deepened following the election, but the underlying demand for AI infrastructure remains strong, with the investigation seen as a company-specific risk rather than a sector-wide threat.