Nvidia: the espionage scandal causes the American company to drop by more than 6% on Wall Street, losing its position as the second largest market capitalization.

Nvidia faces significant stock decline due to a scandal involving CEO Jensen Huang's alleged ties to a Chinese official, briefly losing its position as the second-largest company by market capitalization to Microsoft. The company's shares dropped 6.81% on November 10, resulting in a loss of over $400 billion in market value since the scandal emerged. Huang's admission of an affair with a Chinese executive, suspected of having connections to Beijing, has led to a class-action lawsuit accusing him and Nvidia of misleading investors. This turmoil comes amid broader concerns in the AI sector, which is already experiencing stock market volatility due to high operational costs and potential regulatory changes following the Democratic Party's midterm election victories.