Bank of America has removed Nvidia from its list of top US stock recommendations, alongside semiconductor companies Micron Technology and Lam Research, as the artificial intelligence chipmaker faces increased scrutiny following an investigation involving its chief executive, Jensen Huang.
The decision, announced on Tuesday, November 10, removes the three companies from Bank of America’s prestigious US 1 List, which features the investment bank’s highest-conviction stock picks among US-listed companies.
However, Bank of America maintained its Buy ratings on all three semiconductor stocks, indicating that their removal from the preferred list does not amount to a downgrade of its overall investment outlook.
The bank has not publicly linked Nvidia’s removal to the controversy surrounding Huang, and the simultaneous exclusion of Micron and Lam Research suggests the decision may reflect broader portfolio or stock-selection considerations.
The development comes days after Nvidia’s board announced an independent investigation into reports that Huang had been targeted by a foreign intelligence operation involving a Chinese businesswoman.
Jensen Huang Controversy
Nvidia’s board launched the investigation following reports that Huang had a close relationship with Alice Huang, a Chinese businesswoman whom US intelligence reportedly identified as an intelligence asset working for Beijing.
Huang subsequently acknowledged being unfaithful to his wife in a message to employees, apologising for his actions and expressing support for the company’s investigation. Nvidia said its board had no reason to believe that national security or the company’s confidential information had been compromised.
