Key Highlights

  • Nvidia (NASDAQ:NVDA) fell 5.47% on Tuesday, November 10, 2026, after a 4.27% drop on Monday, and its Market Value briefly slipped below USD 4 trillion during the session.
  • At the intraday low the stock was down more than 7%, and the two-day selloff erased more than USD 430 billion of market value.
  • A Shareholder lawsuit alleged investors were misled, President Trump said the FBI was looking into the matter, and the board's independent directors retained former acting US Attorney Joon H. Kim.
  • The decline was the single largest drag on all three major indexes as the S&P 500 fell 0.38% and the Nasdaq Composite 0.74% after a hot Inflation report.

What Drove the Second Day of Selling

The selling extended a reaction to the weekend, when Jensen Huang acknowledged an extramarital relationship and the board opened an independent review of reports that he had been the target of a foreign intelligence effort. On Tuesday the story widened on several fronts. A class action alleged that the company and its chief executive had misled investors. President Trump, who had earlier backed Huang, said the FBI was looking into the matter. Separate reporting alleged that the relationship had facilitated at least USD 7.5 billion of chip shipments through Chinese firms, a claim that has not been confirmed. A US senator called for Huang to step down, and lawmakers had already asked him to brief House committees behind closed doors on November 18. In the afternoon, Nvidia said its independent directors had retained Joon H. Kim, a former acting US Attorney for the Southern District of New York, and the law firm Wachtell, Lipton, Rosen and Katz.

Why the USD 4 Trillion Line Mattered

The figure is symbolic but meaningful for flows. Nvidia became the first company to pass USD 4 trillion and later USD 5 trillion, and a fall below that level signalled how quickly sentiment had turned. The shares were down about 26% over one month at the low, near 52-week lows and roughly 18% lower over five sessions, and about 27% below the October 6 record close of USD 239.24 by midweek. One major broker flagged key person risk, while another later removed the stock from its list of top picks under a stop-loss rule. The selloff came on a day when October consumer prices rose 0.4% and the 10-year Treasury Yield briefly topped 5%, which hurt Growth Stocks generally. Technology was the weakest sector, down 1.15%, and Nvidia's index weight meant its fall accounted for a large share of the market's decline.

Separating Governance From Demand

None of Tuesday's news changed the company's guidance. Nvidia expects third-quarter fiscal 2027 Revenue of USD 108 billion, plus or minus 2%, and the following day CoreWeave raised its outlook, citing overwhelming Demand for AI infrastructure. TSMC also reported October revenue up 59.7%. The risk lies in execution and policy: the investigation touches export controls on advanced chips to China, an area where tighter rules could affect future sales. Lawmakers have already used the episode to press for stricter controls on chip shipments to Asian intermediaries, and the company's China revenue has been under pressure for more than a year.

Where Things Stand

Tuesday's fall set up a volatile week and left the stock trading at a steep discount to its October peak. The shares rebounded 2.87% on Wednesday before reports late that day that the board was preparing to remove Huang sent them sharply lower after hours, and on November 12 the company announced that Huang had resigned as chief executive and director, with CFO Colette Kress interim chief executive. Results on November 17 and the search for a permanent chief executive are the next catalysts, alongside any official comment on the investigation.