Nvidia's share price rebounds after taking a beating: Wall Street turns green

U.S. stock markets rebounded strongly on Wednesday, led by technology companies. Nvidia, in particular, is attracting attention. The chip giant's share price is rising again after two tough trading days, during which concerns about CEO Jensen Huang led to significant losses. Other companies that benefit from artificial intelligence are also making substantial gains.

The upturn follows strong quarterly results from CoreWeave, which are boosting confidence in the AI sector. Nevertheless, concerns remain about high inflation, rising interest rates and the future of Nvidia.

The Nvidia share price is $171.48. That represents an increase of 1 percent compared to the previous closing price. Earlier in the trading day, the stock even reached $175.13.

The recovery is notable after the heavy losses of the past few days. On Monday, Nvidia lost 4.3 percent, followed by a 5.47 percent drop on Tuesday. Over the past month, the stock has fallen in value by about 24 percent.

The wave of selling occurred after it became known that CEO Jensen Huang had an extramarital affair with a woman suspected of spying for China. Investors fear that the affair could have consequences for the company and for U.S. restrictions on the export of advanced chips to China.

Nvidia has now engaged the law firm Wachtell Lipton to conduct an independent investigation into whether trade secrets or national security have been compromised. The board previously emphasized that it had no evidence that sensitive information had actually been stolen.

Meanwhile, the pressure on Huang is mounting. On Wednesday, analyst Tristan Gerra of Baird lowered his price target for Nvidia from $500 to $200. He believes a new CEO is needed to restore confidence.

Other analysts are less pessimistic. Vijay Rakesh of Mizuho also lowered his price target from $315 to $250, but expects Huang to remain in his position for the time being.

The biggest rise on Wednesday comes from CoreWeave, a U.S. provider of data centers and computing power for artificial intelligence.

The share price surges by 20.34 percent to $58.64. This makes CoreWeave one of the most notable gainers on Wall Street.

The surge in share price follows quarterly results that were better than expected. CoreWeave achieved revenue of $3.66 billion, compared to an expected $3.55 billion. Compared to a year earlier, revenue grew by as much as 168 percent.

The company also raised its revenue forecast for the full year 2026 to $13 billion to $13.3 billion. CoreWeave also does not intend to take out any new unsecured loans for the time being, following a sharp rise in borrowing costs.

The latter is important for investors. In recent weeks, fears have grown that AI companies are borrowing too much money to build huge data centers, while it remains uncertain whether those investments will yield sufficient returns.

The strong results are temporarily boosting confidence in the sector. In addition to Nvidia, companies such as Nebius, Oracle, Iren and Applied Digital are also benefiting from the improved sentiment.

The upturn is also evident in the major U.S. stock market indices. The tech-focused Nasdaq is up about 1.34 percent, while the S&P 500 is up about 0.84 percent.

However, the recovery is not evident everywhere. The Dow Jones is down about 0.18 percent. According to FactSet data, only 246 stocks within the S&P 500 are rising, meaning that gains are largely driven by a relatively small group of technology companies.

At the same time, U.S. inflation remains a significant risk. October's inflation figures came in higher than expected on Tuesday, prompting investors to consider further interest rate hikes by the Federal Reserve.

The market now estimates the probability of a 0.25 percentage point interest rate hike in December at around 87 percent. Higher interest rates make borrowing more expensive and can particularly affect fast-growing technology companies.

Another important moment is coming up for Nvidia. On November 17, the company will present its quarterly results. In doing so, investors will not only focus on the demand for AI chips but also on any potential impact of the uncertainty surrounding Huang on the company’s operations.