Nvidia’s post-Huang era begins under growing pressure from Washington

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Nvidia enters a more difficult post-Huang era

Nvidia faces governance questions after Huang's resignation

The Financial Times noted on November 15 that Jensen Huang’s resignation following a scandal involving alleged contacts with Chinese intelligence has raised questions about the effectiveness of Nvidia’s corporate oversight. U.S. authorities may now turn their attention to other senior executives and examine what they knew about any potential violations of export restrictions.

The FT also argued that Nvidia’s aggressive lobbying for greater access to the Chinese market had already strained its relationship with lawmakers from both parties. Rebuilding trust in Washington may require a different approach to government relations as well as significant changes within the company’s leadership structure.

Congress pushes for stricter AI chip export restrictions

Reuters says bipartisan support is building in Congress for tighter controls on exports of advanced AI chips to China, according to House Speaker Mike Johnson.

Lawmakers are considering several proposals, including the Chip Security Act, which would introduce location tracking for processors, and the Remote Access Security Act, aimed at restricting Chinese companies’ access to U.S. chips through overseas data centers. If adopted, the measures could significantly reduce Nvidia’s opportunities in the Chinese market.

Megaspeed investigation increases pressure on Washington

Regulatory pressure is also rising around Singapore-based Megaspeed International, which is said to have purchased more than $4 billion worth of advanced Nvidia chips.

The Associated Press cited U.S. Treasury Secretary Scott Bessent criticizing the Commerce Department over delays in imposing restrictions on Megaspeed. The Justice Department is examining possible violations of export-control rules, while lawmakers are seeking answers from government officials and Nvidia representatives. Megaspeed, for its part, says it complies with U.S. export regulations.

Nvidia's leadership transition raises new earnings concerns

The political pressure adds another layer of uncertainty to Nvidia’s financial outlook. The company must not only rebuild confidence among regulators but also convince investors that the leadership transition will not weaken its competitive position in AI accelerators.

Traders Union highlighted another warning sign, when HSBC downgraded Nvidia from Buy to Hold and cut its price target from $365 to $170. HSBC estimates that additional export restrictions could reduce Nvidia’s fiscal 2028 earnings per share by roughly 13%, underscoring the potential financial impact of a tougher U.S. policy stance.

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