Nvidia’s sale is accelerating. What’s next for the title?

Yesterday was not a good day for Nvidia. Today wasn’t much better.

Shares of the chip giant ended Tuesday down 5.5%, falling for the second day this week to levels last seen in the spring. As of Tuesday’s close at $168.47, recent prices around $168 were down about 10% from Friday’s close as investors digested news that CEO Jensen Huang is under investigation for ties to a Chinese spy and faces a broader downtrend triggered in part by new concerns over rising rates.

The latest move sent the stock down about 18% this month. What’s next for Huang – and Nvidia (NVDA) – remains a moving target.

President Donald Trump said yesterday that the FBI was investigating the matter, adding that he had spoken with Huang since the allegations were first reported. In prediction markets, traders seem to think he is safe for now, although the perceived odds of his departure have increased slightly since yesterday on Kalshi.

This could leave investors in an uncertain position for some time. Bank of America analysts yesterday called the latest events “an overhang, not yet an earnings event.” Analysts suggested three scenarios, citing “1) containment, with continuity of leadership and no material results to refocus the fundamentals; 2) prolonged uncertainty, putting pressure on valuation ahead of earnings; 3) escalation, with adverse outcomes, disruption of leadership, or tighter restrictions requiring a reevaluation of benefits. »

Some market participants took advantage of yesterday’s action to increase their holdings. Ark Investment Management funds, including the Ark Innovation ETF (ARKK), together purchased more than 90,000 shares on Monday, according to trading reports.

Nvidia is expected to release its latest results next week.

This story has been updated since it was first published to reflect the close of trading.