Investment firm increases nvidia stake amid leadership investigation

NVIDIA’s stock price fell 4.27% to $178.67, its lowest close since April 7, 2026, while ARKK rose 4.66%. The decline was attributed to the company’s own news.

The investigation stemmed from a staff memo released by Huang on November 8, in which he admitted to infidelity. This followed a report from October 29 alleging that Megaspeed executive Alice Huang (no relation) was a suspected Chinese intelligence asset, a claim China’s Foreign Ministry deemed unsubstantiated.

This acquisition marks the third consecutive session that ARK has added to its NVIDIA holdings. Previously, on November 5, ARKK and a sister fund bought 252,592 shares, worth about $45.9 million. ARKK already held 1,153,992 shares of NVIDIA, representing 3.67% of the fund.

To finance the purchase, ARK sold shares of Tempus AI, Block, and Broadcom, as well as shares of Palantir, BYD, Synopsys, and its own spot Bitcoin ETF. The firm also acquired shares of SoFi.

ARK’s decision to invest during the governance scandal reflects a belief that the company’s core business will endure. NVIDIA reported fiscal second-quarter revenue of $96.221 billion, a 105.85% increase year-over-year, and projects $108.0 billion for the third quarter.

A key risk remains the company’s dependence on a single leader, and potential export controls, as any national security implications related to Huang’s conduct could impact chip sales to China. NVIDIA currently trades at a price-to-earnings ratio of approximately 36x, with sales still more than doubling.

The company’s next earnings report, expected on Tuesday, November 17, will provide further insight into the business’s performance. A closing price below $178.10 could indicate ARK’s investment was premature.