In a major update, Bank of America has pulled Nvidia from its US 1 list as the bank’s shortlist of top investment ideas. The cut comes days after CEO Jensen Huang acknowledged an affair with a woman whom US intelligence suspects of spying for China.
Bank of America also dropped Micron and Lam Research which builds chipmaking machines and the three stocks moved in opposite directions on Monday. Notably, Nvidia plunged more than 4% as its board probed Huang, while Micron and Lam Research climbed.
According to ROIC reports, the bank cut one scandal-hit stock and two increasing ones in the same direction.
For those unversed, Huang faces a November 11 deadline to tell Congress whether he will brief lawmakers. While Nvidia maintains a mixed outlook overall, Bank of America, still rates it a Buy.
Earlier, The New York Times, Nvidia boss Jensen Huang had a close relationship with a Chinese businesswoman whom US officials formally determined was conducting espionage for Beijing. The story was primarily based on interviews with individuals familiar with sensitive intelligence. An executive at Singapore-based chip company Megaspeed who was accused of facilitating the acquisition of restricted microchips revealed her close ties to the Nvidia boss and Beijing.
