Nvidia Says Spy Allegations Were "Debunked." Debunked By Nvidia.

Nvidia investigated Nvidia. Nvidia cleared Nvidia. Case closed.

The New York Times reported that U.S. spy agencies surveilled Alice Huang, a Megaspeed executive, over fears she was a Chinese intelligence asset. She reportedly built a close relationship with Jensen Huang. The Times says officials believed Jensen didn't know what she was up to. Nvidia says the two are not related. Same last name. Total coincidence. Statistically, it's the most common one in the world.

Nvidia's response is a masterpiece of corporate brevity. The diversion allegations against this regional cloud were "thoroughly investigated and debunked last year." Note the word "regional." Megaspeed is a Singapore data center operator. Nvidia would like you to picture a quaint local business. Maybe a bakery. A bakery with GPUs.

Nvidia also said Jensen's interactions with her were "not unusual or unexpected." That's the problem. Nobody asked if they were unusual. They asked if she was a spy. Answering a different question is how you know the lawyers wrote it.

Then comes the line I love most. Nvidia said it's confident that if the government believed any person was a threat to American industry, it would let them know. The Times reports the government didn't, possibly to avoid tipping her off. So Nvidia's security plan is waiting by the phone. Nvidia is worth trillions. It runs its counterintelligence like a guy waiting for a text back.

The Times used anonymous sources. Nvidia used the word "debunked." Both are fine with that. Nobody has shown Jensen passed anything to Beijing. That matters. It will matter for about nine minutes, until Elizabeth Warren's letter finishes loading.

Retail traders will now study this. They will draw a chart. They will find a head-and-shoulders pattern in a spy story. They will buy calls on the word "debunked."

Nvidia's best defense is that its CEO was surveilled for a year and nobody told him. That's not a denial. That's a man who wasn't invited to his own investigation.

Photo by Mariia Berezovsky on Unsplash