Why Nvidia Stock Fell Again on Tuesday | The Motley Fool

Shares of Nvidia (NVDA -6.14%) were sliding again today as investors continued to react to news that CEO Jensen Huang had an affair with a suspected Chinese spy.

The revelations came out over the weekend, and Nvidia announced that it would investigate the matter and published a letter from Huang to employees apologizing for the behavior.

Today’s sell-off comes as the federal government is now preparing to investigate the matter as well. As of 11:04 a.m. ET, the stock was down 5%, hovering near its 52-week low.

The Nvidia investigation expands

This morning, President Trump said the FBI is investigating Huang’s relationship with the purported spy, Alice Huang (no relation), who was an executive at a Singapore-based data center company, Megaspeed.

Additionally, The New York Times had reported that an inquiry that began with the Commerce Department was transferred to the Justice Department after Nvidia intervened in the case.

It’s the latest evidence of the tangled web in which Nvidia now finds itself, as the company had become deeply influential in government, partly in a bid to advocate for looser chip export rules.

Investors are likely to see more reporting come out on Nvidia, especially as Democrats, newly empowered from the midterm election, are calling for investigations into Nvidia.

What’s next for Nvidia

The timing of these revelations comes just a week before Nvidia is…