3 scenarios for NVIDIA stock amid the Huang scandal.
The CEO of NVIDIA, Jensen Huang, is at the center of a deafening scandal: perhaps the CEO of the world's leading chip manufacturer fell into the "honey trap" of the Chinese intelligence services. Jensen had an affair with businesswoman Alice Huang, who US intelligence agencies consider to be a Chinese spy.
For investors, this story already goes beyond the scope of a personal scandal - NVIDIA shares are falling, and personally, Huang's adultery has already cost $ 21 billion. RBC Investments analyzed the main scenarios for quotes:.
from a quick recovery after an investigation;.
For the unreasonably stressful option with a 10-30% drop.
What events separate one scenario from the other, and why might the consequences affect not only NVIDIA but other AI companies as well? What will the company lose in the hypothetical departure of the founder, if the demand for chips remains high and product plans are planned years in advance? And why might a more serious risk not be in a change in leadership, but in new restrictions on sales?
Read more about how the scandal surrounding Huang's scheming could turn out for NVIDIA and its stock.
Photo: Jens Cullen / dpa / Global Look Press.