“I would argue that just this story has cost NVIDIA a trillion dollars. Just a story, because all the other chip stocks were up 10%. … That's a very costly mistake.”
Prof G Media · Tech Strategy & Big Tech · November 2026
Context
Ed Elson asked for Luria's reaction after Nvidia's stock fell on the news of the CEO's affair with an alleged Chinese spy. Luria's point is that Nvidia fell while other chip stocks rose, which puts a number on the damage.
Transcript
…opportunity in semis, but NVIDIA is now one of the highest risk semis. There are other semis where the risk is lower and their war is also hot. Broadcom, AMD, Micron. Yes, maybe there will be further restrictions on sales to China, but they're not going to have to deal with this kind of episode.
…would bring NVIDIA to its knees is basically an affair, a scandal between Jensen Wong and an alleged Chinese spy. I want to get your views on the stock and where it's trading at this point, but let's just start with your initial reactions. What do you make of everything that has unfolded this week?
Well, it's very disappointing, to say the least. And I would argue that just this story has cost NVIDIA a trillion dollars. Just a story, because all the other chip stocks were up 10%. And so if NVIDIA is down 10% when all down, that means NVIDIA is really down 20%, which is a trillion dollars. That's a very costly mistake. The risks here are that the investigation does find wrongdoing, that NVIDIA knowingly sold chips to China that it shouldn't have, that NVIDIA knowingly sold chips to compute providers they knew would provide access to Chinese companies. That's the big risk…
Is it possible to put numbers on the risk at this point? Because that's kind of the investor's job right now. I mean, on the one hand, you've got the risk that they knew what was going on and that they knew that they were smuggling chips to China, if that is indeed what was going on. And so you…
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