Nvidia Faces Regulatory Scrutiny Over Report Top Lawyer Intervened in Chip Smuggling Probe

Nvidia Corp. shares fell approximately 4% following revelations that its top legal counsel intervened in a U.S. government investigation into suspected artificial intelligence chip smuggling by Megaspeed International. The regulatory overhang caused Nvidia's stock to diverge from the broader technology sector, even as the Philadelphia Semiconductor Index surged 7% and the S&P 500 rose 2.35% amid aggressive dip-buying. The scrutiny around Nvidia and CEO Jensen Huang coincides with Anthropic beginning to market its initial public offering, with its prospective valuation falling toward $1 trillion from roughly $2 trillion amid cooling tech sentiment.