Nvidia Falls for a Second Day as Trump Backs Huang and Shareholders Sue

President Trump spoke with Jensen Huang on Monday and said he believes him. A shareholder class action landed the same day, Congress pushed chip-export bills, and Bank of America pulled Nvidia from its top-ideas list.

NEW YORK, Nov 10 — Nvidia fell again in early trading Tuesday, down about 4.6% mid-morning (intraday market data), extending Monday's 4.27% drop as the board investigation into CEO Jensen Huang widened on every front. What each party said on the record is in our full breakdown.

Trump spoke with Huang — and confirmed an FBI probe#

President Trump said Monday he had spoken with Huang and asked him directly, "Did you have any idea that she was a spy?" Huang said he had no idea, and Trump said, "I really believe him." Trump also confirmed the FBI is looking into the matter (Reuters). On Sunday, Trump had told reporters the two had not spoken.

Shareholders sued the same day#

A proposed securities class action (Kistenmacher v. NVIDIA) was filed Monday in federal court in San Jose, minutes after the close, alleging that public statements by Nvidia and Huang about Megaspeed were misleading because they omitted the relationship. A second law firm announced a securities-fraud investigation on Tuesday. Nvidia did not immediately respond to requests for comment.

Congress is moving on chip controls#

Sens. Elizabeth Warren (D-MA) and Jim Banks (R-IN) issued a joint statement Monday backing three chip-export measures — the AI Overwatch Act, the Chip Security Act and the Match Act — as candidates for the FY2027 defense authorization bill; the House Foreign Affairs Committee has already advanced all three. House Democratic leader Hakeem Jeffries disclosed that Monday's classified briefing for congressional leaders with CIA Director John Ratcliffe briefly discussed Nvidia. Sen. Chris Coons has called for a congressional investigation.

Wall Street trimmed conviction#

Bank of America removed Nvidia from its US 1 list of top stock ideas on Tuesday, while keeping its Buy rating and $350 price target. Wells Fargo cut its target to $300 from $315, citing leadership uncertainty. Dan Ives estimated the market is pricing roughly a 15% chance Huang is forced out, and warned a forced exit could knock 25% to 30% off the shares initially; Wedbush and Bernstein analysts said the issue looks personal and Nvidia-specific rather than a demand problem. Cathie Wood's ARK bought about 90,000 shares, roughly $17 million, on Monday.

The other party#

Reuters profiled Alice Huang on Tuesday from more than 30 public records: senior roles at Shanghai investment firm Hexi, then controlling shareholder of Megaspeed International from March 2023. ImportGenius shipping records reviewed by Reuters show Megaspeed's Indonesian subsidiary imported Nvidia hardware between 2024 and 2026, including H100 processors. Reuters noted there has been no public finding that Megaspeed violated export rules, and could not determine Alice Huang's whereabouts to seek comment. Neither she nor Megaspeed has made a public statement.

Separately, The Information reported Tuesday that the relationship allegedly enabled about $7.5 billion in chip shipments to Chinese firms through a network of companies. Reuters said it could not independently verify that report, and Nvidia did not immediately respond.

What is next#

Huang faces a Wednesday, November 11 deadline to respond to three House committee chairmen seeking a closed-door briefing on November 18. Reuters also reported Tuesday that Nvidia's board — which has no chair and includes three directors serving since the 1990s — faces governance questions about investigating Huang independently. Nvidia reports earnings November 17. No SEC filing related to the investigation had surfaced as of Tuesday morning.

Share price moves are intraday snapshots from market data feeds. This brief is news reporting, not financial advice.

Sources#

Plain-English explainers, not advice. Nothing here tells you to buy, sell, or hold anything.