The mythical character is in trouble! Wall Street downgrades Huida stock

After Huida CEO Jen-Hsun Huang's extramarital affair came to light, Wall Street analysts began downgrading the once "unbeatable" stock of Huida.

Baird analyst Tristan Gerra downgraded Huida to neutral on Wednesday in a report titled "Icarus' Rise and Fall; Company Will be Fine." Icarus is a character in Greek mythology who fell into the sea and drowned while escaping from a maze due to his excessive arrogance.

"Huida's rating will be downgraded to Neutral until uncertainty about U.S. government actions that may arise from upcoming congressional hearings is resolved, U.S. government investigations are concluded, near-term adjustments to the risk pipeline are made, and the impact of potential charges on revenue is quantified," Guerra wrote.

Guerra highlighted several near-term risks to Huida stock, including a new ban on H200 exports to China. He said: "We believe that a small amount of product is currently being shipped to warehouses in Asia, and some inventory is waiting to meet demand in China. We estimate that this may result in an impairment loss of $5 billion."

Huida's board of directors has launched an independent investigation into reports that the person involved in Huang's extramarital affair is suspected of spying for the Chinese government. The board said it hired powerful law firm Wachtell, Lipton, Rosen & Katz to investigate.