by Coinstrooper Crypto Articles
Quick Take
  • Nvidia, the engine of the AI boom, is in a bear market.
  • Shares sank to about $177 on Monday, 26% below their October record, as a China spy scandal reached its CEO.
  • A bear market means a fall of 20% or more from a peak.
  • Nvidia sits in most US index funds, so ordinary savers share the pain.

What Happened

Commerce Department investigators handed that case to the Justice Department after Nvidia’s lawyers contacted them, citing a senior official’s approval, The New York Times reported.

“Once they get the results of the investigation, they’ll have some tough choices,” he said.

Google Launches 2 Chips to Rival Nvidia

Why Some Investors See an Nvidia Bottom

Meanwhile., according to investor Anthony Pompliano, it would be “objectively hilarious” if Huang’s ongoing woes marked the bottom of the AI selloff.

Market Context

Nvidia, the engine of the AI boom, is in a bear market. Shares sank to about $177 on Monday, 26% below their October record, as a China spy scandal reached its CEO.

A bear market means a fall of 20% or more from a peak. Nvidia sits in most US index funds, so ordinary savers share the pain.

The post Nvidia Enters Bear Market As Google Strikes Amid Jensen Huang's China Spy Woes appeared first on BeInCrypto.

Why It Matters

Her former employer, Megaspeed, is the bigger risk. The Singapore firm bought billions in Nvidia gear for Chinese clients. US officials suspected some chips were smuggled into China despite export bans.

“Extreme bearishness often signals the end of selling, not the start,” he wrote.

Details

A China Smuggling Probe Lands at the Justice Department

Nvidia’s board opened an inquiry Sunday after CEO Jensen Huang admitted an affair with Alice Huang, whom US intelligence reportedly suspected of spying for China.

The Times found no proof Nvidia changed the outcome, and Nvidia says it fights smuggling. Still, former SEC Chair Gary Gensler sees a reckoning.

Amid the spy woes, Google unveiled two AI chips on Monday to rival Nvidia’s. Anthropic, Meta, and Oracle already use its tensor processing units (TPUs), and OpenAI reportedly plans to buy.

Bloomberg Intelligence sees TPU sales rising from about $12 billion this year to over $135 billion by 2028. Alphabet stock rose 2.4% toward $295.

Nvidia lost about 12% in five days, extending Wall Street’s $2.5 trillion crash.

Analyst mood collapsed too. CryptoQuant’s analyst consensus index fell from +0.4 on October 10 to -2.6 on November 9, its most bearish reading on record.

CryptoQuant CEO Ki Young Ju said the story flipped from “AI supercycle” to “dot-com bubble” in four weeks. Yet he sees hope.

The board’s findings and Nvidia’s next earnings will test that bet.