Nvidia shares fell 5.5% on Tuesday, making the chipmaker one of the worst performers in the S&P 500 as a board investigation into chief executive Jensen Huang weighed on the stock. The shares closed at $168.89, and Nvidia was the single heaviest drag on the index during a broad market sell-off.

Investigation into Huang

Nvidia's board is investigating Huang over an affair, and the company is examining the case. The sell-off extended a difficult run for the stock, which had already fallen on Monday as the reports emerged. Nvidia reports quarterly earnings on 17 November, after the market closes, when investors will look for an update on demand for its artificial intelligence chips.

Other chip stocks hold up

The wider chip sector fared better: the PHLX Semiconductor Index fell by less than 0.4%, with gains elsewhere in the sector offsetting Nvidia's drop. AMD, another chipmaker, had jumped 13.3% on Monday after an upgrade from Oppenheimer, showing investors were still willing to back chip stocks. The contrast underlines that Tuesday's fall was driven by company-specific news rather than a wider turn against chipmakers. Even so, Nvidia's size means its swings move the whole market, and its slide helped push the S&P 500 and Nasdaq lower on the day.