Why do CEO scandals affect company stock prices? Because the market isn't just concerned with the gossip itself, but rather the potential operational risks it may pose. When an incident involves current core executives, corporate governance, compliance reviews, or even potentially national security or core business information, investors reassess three things: 1. Can management maintain stable performance? 2. Will the company face additional investigation, regulatory, or legal costs? 3. Will core business, customers, and partners be affected? This is why market reactions differ drastically even when executives are involved in scandals. If it's a personal matter involving someone who has stepped down from management, holds limited shares, or has little connection to the company's business, the stock price may not fluctuate significantly; however, if it involves the founder and CEO, who holds significant shares and controls the company's strategy and key relationships, the market becomes much more sensitive. The key point to watch in Nvidia's case isn't rushing to judge a single day's stock price movement, but rather whether the subsequent investigation will affect governance stability, customer confidence, and business progress. Nvidia's board of directors has announced an independent investigation, stating that no reason has been found to have compromised national security or company secrets. Jensen Huang has also stated that he will cooperate with the investigation. In investing, the CEO is not the company itself; however, for companies highly dependent on the founder, technological roadmap, and key decisions, CEO risk is indeed part of the valuation. Therefore, when looking at such news, avoid emotional buying and selling, and focus on three things: the investigation's findings, management arrangements, and whether there have been any substantial changes to the core business.