Dubai: Nvidia shares are staging a recovery in premarket trade on Friday as investors weighed the fallout from Jensen Huang’s resignation. The stock is trying to gain back the losses from the 4.34 per cent fall it took in the previous session. But the pressure from Washington and Beijing keeps mounting.
Congress is moving first. Senate Banking chair Tim Scott asked Huang and Commerce Secretary Howard Lutnick to testify. Three House committees have asked Huang and general counsel Tim Teter on December 1 and 2, or face subpoenas. Huang has already agreed to testify behind closed doors before November 26.
Meanwhile those resignation repercussions are being felt far away in China too. Chinese AI shares tumbled on Friday on fears of tighter chip curbs. Speaker Mike Johnson has expressed that he sees a growing consensus in Congress on limiting exports to China.
Reacting to that, Beijing has warned that tighter US rules would threaten global supply chains further. President Donald Trump has called the scandal a “horrible thing”.
And there is more legal trouble for the chip maker and its co-founder as a shareholder class action suit has been filed against both. The case alleges that Nvidia and Huang inflated the share price by failing to disclose the affair.
What are market players pricing in?
