Nvidia's Senate Showdown Looms as Huang Forges Billion-Dollar Alliances in Asia
10.06.2026 - 22:14:42 | boerse-global.de
Jensen Huang is orchestrating a dual strategy that could define Nvidia’s next decade. While the CEO deepens partnerships in South Korea and throws weight behind a $500bn data centre in Ohio, back in Washington the political heat is rising. The tension between aggressive global expansion and mounting regulatory scrutiny is playing out in real time on the share price.
The stock has been caught in a crosscurrent. It recently closed at €173.48, shedding 3.74% in a single session and losing more than 6% over the past week. On another trading day it slipped another 2.55% to €175.62, falling just below its 50-day moving average. The relative strength index sits at 41.8, not yet oversold but signalling waning momentum.
Macro Jitters and a Senate Subpoena
The sell-off started in early June after a surprisingly strong US jobs report. The economy added 172,000 positions, more than double expectations, reviving fears that the Federal Reserve will keep rates higher for longer. That hits richly valued growth stocks hard. A disappointing earnings update from Broadcom added to the gloom.
But the macro picture is only half the story. Senator Elizabeth Warren has summoned Huang to appear before the Senate Banking Committee on June 11 to discuss Nvidia’s China business and US export controls. Huang declined the invitation, drawing sharp criticism from Warren, who said the public deserves answers. The Justice Department is already investigating several cases of alleged illegal exports of H100 and H200 chips worth millions of dollars, routed through Southeast Asian intermediaries. Late last month the Commerce Department tightened export rules, blocking subsidiaries in Singapore and Malaysia.
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The China Conundrum
The geopolitical pressure creates a paradox at the heart of Nvidia’s valuation. The company posted a record first-quarter revenue of $81.6bn, up 85% year on year, with the data centre segment surging 92%. Yet management guided for zero revenue from Chinese data centres in the second quarter. That sends a clear message: even as Nvidia scales at a historic pace, it considers one of the world’s biggest AI markets too uncertain to forecast.
The impact is already visible. Nvidia’s share of the AI accelerator market in China has fallen from nearly 95% to around 55%, while domestic rival Huawei has captured about 20%.
Empire-Building from Seoul to Ohio
Against that backdrop, Huang is pressing ahead with a series of bold moves overseas. In Seoul he sealed partnerships with SK Telecom and Naver to build AI factories. A 55-megawatt facility is scheduled to launch in 2027, expanding to 200 megawatts a year later. Naver expects 20 trillion won ($14.5bn) in revenue from the infrastructure over five years. Nvidia is also working with LG on robotics and with Doosan on plant engineering.
In a more aggressive play, Nvidia is taking aim at Intel and AMD with a new data centre processor called Vera. The chip packs 88 cores and runs 1.8 times faster than existing x86 systems. Mass production is expected to begin in the second half of 2026, with SK Hynix supplying specialised memory.
Across the Pacific, OpenAI is in talks to build a massive data centre campus in Ohio with 10 gigawatts of power capacity. The cost is estimated at $500bn. Nvidia is reportedly prepared to backstop the project by guaranteeing lease agreements, with the first construction phase scheduled for 2028.
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Insiders Cash Out While Analysts Stay Bullish
Despite the expansion drive, some big shareholders are dialling back. David Tepper cut his Nvidia stake by 13% in the first quarter. Dan Loeb’s Third Point sold nearly all its position. Director Mark Stevens unloaded a large chunk of shares in early June, pocketing $221m.
Analysts remain largely upbeat. Loop Capital rates the stock a strong buy with a $350 price target, betting on a doubling of GPU shipments and higher average selling prices in the months ahead.
The picture that emerges is of a company executing on multiple fronts while navigating a political environment that increasingly treats it as an instrument of national security. For investors, the gap between the operational strength and the regulatory risk is where the real story — and the real volatility — lies.
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