Wall Street’s confidence in Nvidia Corp. is waning as an investigation into CEO Jensen Huang’s alleged affair with a Chinese spy raises concerns about the company’s future. The controversy escalated after Huang disclosed the affair in a memo to employees, prompting a shift in investor sentiment.
Baird downgraded Nvidia’s stock to neutral, while Morgan Stanley removed the AI chipmaker from its Top Picks list. These moves signal growing uncertainty about Nvidia’s prospects amid the ongoing investigation.
The investigation has cast a shadow over Nvidia, which has been a key player in the artificial intelligence sector. The downgrades reflect concerns that the scandal could impact the company’s leadership and strategic direction.