The key facts

  • Nvidia gained 5.05% in premarket trading to $177.35 after falling 5.47% on Tuesday and about 4.3% on Monday
  • The board hired June H. Kim and the firm Wachtell, Lipton, Rosen & Katz for an independent investigation
  • Nvidia's third-quarter earnings report is due on November 17

A rebound after two days of declines

Nvidia shares rose more than 5% in premarket trading on Wednesday — to $177.35 (up 5.05% as of 10:25 GMT), the Anadolu agency reported. This came after two days of losses: on Tuesday the stock closed down 5.47% at $168.89, and on Monday it lost about 4.3%. The gains came amid a broad rally in semiconductor and AI stocks, as investors weighed news about an investigation involving the company's chief executive ahead of next week's earnings report.

A rally across the entire sector

Other chipmakers rose alongside Nvidia: AMD gained 5.2%, Intel 5%, Qualcomm 2.9%, Broadcom 4%, and Micron Technology 6.7%. Cloud AI provider CoreWeave jumped 10.6% after releasing its quarterly results: third-quarter revenue came in at $3.66 billion versus $1.37 billion a year earlier, growth of roughly 168%. The company also raised its full-year revenue guidance to $13–13.3 billion, adjusted operating income to $1.275–1.375 billion, and the lower end of its capital expenditure plan to $37–39 billion, expecting to deliver infrastructure to customers ahead of schedule.

The investigation and support for Huang

The trigger for the volatility was an investigation announced on Sunday: Nvidia's independent board members said on Tuesday that they had hired June H. Kim, a former acting US attorney for the Southern District of New York, and the law firm Wachtell, Lipton, Rosen & Katz to conduct an independent review. It follows reports that CEO Jensen Huang was the target of a foreign intelligence operation. The board said it saw no reason to believe that national security or the company's trade secrets had been compromised, but committed to examining all available information. The directors expressed confidence in Huang and his team, noting that he had supported the review and agreed to cooperate. The key event for the market remains Nvidia's fiscal third-quarter report on November 17, which will show demand for its AI chips.