This article first appeared on GuruFocus.
NVIDIA (NASDAQ:NVDA) shares fell 4.43% to $170.75 as of 9:53 a.m. ET in regular trading on November 10, after The Information reported that Jensen Huang’s personal relationship with a businesswoman alleged to work for Beijing helped move at least $7.5 billion of its chips to Chinese firms. That stacks on Monday’s 4.27% drop. Reuters, which carried the report, said it could not independently verify the claims.
The report describes a web of companies in China and Singapore, centered on Shanghai Century Litong, that won preferred cloud-partner status within months of its June 2023 founding. When orders for export-restricted chips stalled, roughly 240,000 H100, H200 and A100 units allegedly reached China. Some of that capacity reportedly served Alibaba, Tencent and smaller Chinese AI labs. The company’s board said a committee of independent directors with outside counsel is running the review. The board added that it has no reason to believe national security or company secrets were compromised.
From the November 6 close of $186.64, the two-day slide is 8.51%, roughly $383 billion of market value on about 24.1 billion shares. The GuruFocus profile is lopsided: GF Score 92/100, Profitability 10/10, Financial Strength 9/10 and Momentum 10/10, but GF Value Rank only 2/10. At $170.75 the shares trade 60.10% below the $427.93 GF Value, yet GuruFocus itself tags the setup “Possible Value Trap, Think Twice.” The model gap alone is no bargain signal. The next hard test is the November 17 third-quarter report, where any export-control questions would surface in guidance or disclosures.
