Bank of America ( BofA ) has removed Nvidia (NASDAQ: NVDA ) from its US 1 list of top investment ideas, adding to the pressure facing the chipmaker.
Notably, the technology giant is attracting market attention as CEO Jensen Huang becomes embroiled in an escalating personal and national security controversy.
In a November 10 report, the banking giant confirmed that it had dropped Nvidia alongside semiconductor companies Lam Research (NASDAQ: LRCX ) and Micron Technology (NASDAQ: MU ) from the curated list.
However, BofA maintained its ‘Buy’ rating on all three stocks , indicating that their removal does not constitute a downgrade.
The US 1 list comprises BofA’s preferred investment ideas selected from US-listed companies covered by its fundamental equity research analysts.
The bank aims to deliver superior investment performance through the portfolio over the long term.
Nvidia Huang controversy
Nvidia’s removal comes amid mounting uncertainty surrounding Huang, whose admission of an extramarital affair has prompted an independent investigation by the company’s board.
Reports link Huang to Alice Huang, a former executive at Singapore-based chipmaker Megaspeed whom US authorities reportedly identified as a Chinese intelligence asset.
On November 8, Huang acknowledged being unfaithful to his wife and apologized to his family and colleagues but did not identify the woman.
The allegations have raised national security concerns over Megaspeed’s reported links to Nvidia’s AI chip business and suspected involvement in securing restricted Nvidia processors for China.
Nvidia’s board has launched an independent investigation but said it has no reason to believe national security or confidential company information was compromised, while expressing confidence in Huang’s leadership.
The controversy has drawn political attention, with U.S. President Donald Trump confirming an FBI investigation, while China’s Foreign Ministry dismissed the spying allegations as unsubstantiated.
Meanwhile, Nvidia investors face broader concerns about AI spending and the sustainability of the technology boom.
Nvidia shares closed at $178.67 on November 9, down 4.27%, wiping approximately $190 billion off its market capitalization.
NVDA one-day stock price chart. Source: Finbold
Despite the sell-off, Nvidia reported trailing 12-month revenue of approximately $303 billion, up 83.4% year-over-year.
Featured image via Shutterstock
The post Banking giant drops Nvidia from top investment stocks amid Huang’s affair saga appeared first on Finbold .
