By Elena Vasquez

Nvidia shares have fallen 21.1% in four weeks, leaving the AI chipmaker 25.3% below its October 6 record close as a board investigation into CEO Jensen Huang placed a national-security allegation at the center of investor concern.

The latest leg broke from the previous one. Nvidia fell 4.3% on Monday after its board opened an independent investigation tied to Huang, and the latest decline had little to do with chips. Last week’s slide, by contrast, hit the whole AI trade.

That distinction matters for investors deciding whether the sell-off reflects a sector retreat or an issue concentrated in Nvidia. On Monday, shares of AMD, Micron, Taiwan Semiconductor and other AI-related stocks jumped while Nvidia was effectively the only red name in the session.

Why did Nvidia fall while AI peers rose?

The split in trading points to a company-specific overhang rather than a synchronized departure from AI stocks. The immediate sequence was Monday’s 4.3% decline, the board’s investigation and Huang’s admission; no chip-demand development was cited as the trigger.

The board said Sunday it had opened an independent investigation after reports that a foreign intelligence effort had targeted Huang. The board “does not believe company secrets were compromised,” it said, while Huang said he “would cooperate fully with the board inquiry.”

Huang also admitted that he had been unfaithful to his wife with a woman whom the U.S. government suspects is a Chinese spy. China’s Foreign Ministry called the spy allegations “groundless,” setting the U.S. suspicion against an official Chinese denial.

What does the national-security issue change?

The central warning is that this correction carries a novel risk that does not appear in a discounted cash flow model. The distinction is between a familiar chip-market decline and an unusual governance and national-security exposure, with no new sales, earnings or product forecast cited to explain the latest move.

That gap changes what investors must weigh. A broad AI sell-off would be read through peer performance; Monday’s move instead centered on the independent inquiry, the allegation of foreign intelligence activity and the board’s assessment of company secrets.

The board’s view that secrets were not believed compromised offers some reassurance, but it does not amount to the final result of the newly opened inquiry. Huang’s promise of full cooperation and China’s rejection of the allegations leave the underlying question unresolved.

Can investors still justify buying the dip?

Nvidia is no stranger to corrections, and the case for buying the dip has history on its side. That precedent-based argument remains separate from the current governance issue; no earlier correction dates, drawdowns or recovery periods accompany it.

The present numbers define the stakes:

• The shares have dropped 21.1% over four weeks.
• Nvidia trades 25.3% below its October 6 record close.
• The latest session produced a 4.3% fall, while AMD, Micron, Taiwan Semiconductor and other AI-related stocks rose.
• The board has begun an independent investigation and does not believe company secrets were compromised.

For a prospective buyer, the case therefore rests on two judgments: Nvidia’s record of surviving earlier corrections, and whether the inquiry centered on Huang will produce broader damage. Monday’s performance gives limited comfort because Nvidia diverged from peers in a session when the broader AI group advanced.

The four-week 21.1% decline has moved Nvidia’s debate from the familiar question of chip demand to a harder test of governance under national-security scrutiny.