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Nvidia stock gets its first boost of the Jensen Huang scandal era. What’s driving shares higher today?

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Nvidia stock gets its first boost of the Jensen Huang scandal era. What’s driving shares higher today?

Shares of Nvidia Corp. (Nasdaq: NVDA) rose over 4% in premarket on Wednesday, and it has CoreWeave to thank. 

The semiconductor giant has spent days watching its stock tumble following news that CEO Jensen Huang had an extramarital affair with a alleged Chinese spy. Shares were down 15.61% in the last five days and 26.34% for the month. 

Now, Nvidia’s stock appears to be benefiting from good news over at CoreWeave. On Tuesday, the cloud-computing company shared third-quarter earnings that beat Wall Street’s revenue estimates and included an improved outlook.

CoreWeave’s revenue rose to $3.66 billion, higher than the expected $3.55 billion, according to consensus estimates cited by CNBC. Its revenue was up 168% year-over-year (YOY). 

The company also raised its 2026 full year outlook for revenue from $13 billion to $13.3 billion. 

CoreWeave’s shares (Nasdaq: CRWV) rose over 15% during premarket Wednesday in response.  

Overall, when one major AI company succeeds it helps ease investors’ concerns about the AI bubble bursting, buoying fellow AI stocks alongside it. 

In this case, Nvidia has even more to gain from CoreWeave’s success. In January, Nvidia invested $2 billion in CoreWeave, making it the company’s second largest shareholder.

This jump also marks a turnaround for CoreWeave, which has seen its stock struggle amid fears of AI overspending.

So-called neocloud companies like CoreWeave, a cloud provider specialized for AI, have been hit especially hard recently. Ahead of its earnings report, CoreWeave’s shares were down 40.63% in the last month. 

How things at Nvidia will shake out is anyone’s guess right now.


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