Nvidia's Credibility Test: Board Backs Huang, Aletheia Steps Aside, and 600,000 Chips Sit in Hong Kong

Aletheia Capital pulled its "Buy" rating on Nvidia yesterday, moving to "Hold" and withdrawing its $340 price target. The research house pointed to risks surrounding Nvidia's AI Computing Partner program and the potential for turbulence inside the company. The stock shrugged off the downgrade, climbing 1.6% today.

The rating change lands in the middle of a far messier story. Reuters reported yesterday that shareholders are seeking a class action against Nvidia and chief executive Jensen Huang, filed in a federal court in San Jose. The suit alleges the company concealed Huang's connections to a woman suspected of being a Chinese spy.

Board Offers Support and Scrutiny in Equal Measure

Nvidia's supervisory board announced an independent investigation on Sunday, tasked with establishing whether Huang was the target of a foreign intelligence service. In the same breath, the board said it saw no reason to believe that national security or corporate secrets had been compromised. Independent board members and outside legal counsel are overseeing the review, the company said yesterday.

Huang acknowledged in a message to employees on Sunday that he had been unfaithful to his wife and apologized for it. He also pledged his full cooperation with the investigation — a commitment that matters to investors only insofar as it translates into unrestricted access to the relevant information.

The stock fell 5.0% yesterday, a decline Reuters linked to the independent probe into reports of a foreign intelligence attempt against Huang. That combination of personal disclosure and institutional review puts the credibility of Nvidia's leadership at center stage. A robust investigation, independently conducted and followed by consequences where warranted, is what the company now needs to let investors return to valuing the operating story on its merits.

Political pressure is building alongside. Hakeem Jeffries, the Democratic leader in the House of Representatives, demanded further answers yesterday about the reports surrounding Huang, according to Reuters, and voiced support for restrictions on American chip sales to China. Tying leadership questions to export policy raises the risk for Nvidia should the debate produce additional regulatory hurdles.

Hong Kong Stockpile Adds a Second Front

Trade logistics are compounding the uncertainty. Roughly 600,000 H200 AI chips were sitting in Hong Kong as of Thursday, awaiting shipment to mainland China, Reuters reported. Beijing has not yet approved large-scale imports.

On the operational side, Nvidia has concrete projects moving forward. The company, Rebellions and SK Telecom announced a collaboration yesterday to connect Rebellions processors to Nvidia's platform via NVLink Fusion and MGX infrastructure, with SK Telecom planning to deploy the systems in its AI data center. The R200 systems are slated to be ready in 2028 — a timeline that will need to hold, along with the technical integration, for the partnership to carry weight with investors.

Nvidia also announced an investment in South Korean startup Point2 yesterday, with further commitments planned in Motif Technologies, RLWRLD and Upstage. No amounts were disclosed. The initiatives signal continued strategic activity, though their financial significance will only become clear once tangible results emerge.

November 17 Is the Date That Counts

The next hard operational checkpoint is the third-quarter fiscal 2027 earnings call, scheduled for November 17, 2026. Chief financial officer Colette Kress is to provide written commentary following the release of the figures. That date carries particular weight because business results can supply a firmer basis for assessing the operating outlook.

The takeaway is a cautious one. Nvidia is addressing the right pressure points — an independent review and a steady stream of partnerships — provided both processes deliver credible results. Leadership credibility comes first. Good operating news gains traction with investors when it is clear on what basis the company is being run.