What seems to actually be happening is that the AI bubble started to pop and this was timed to act as a way to try and explain to investors why the AI bubble isn't actually popping — its just the market reacting to one guy's indiscretions, yea that's it — in hopes of recovering market sentiment. There is no reason to believe the story is fabricated, but it is also quite clear that everyone around Jensen already knew about this for a long time. They'd have reported it sooner if it was something people actually cared about.
Which is quite a big jump even with all the other volatility since early October.
The decline also seems steeper to me since the Chinese Spy affair became public knowledge. Which makes sense, Jensen Huang has potentially opened up NVidia to an illegal sanctions avoiding scheme. It's not very clear what the legal repercussions of these events are.
The multiple affairs are mostly just tabloid bullshit. But one of the affairs has extreme repercussions, especially if something like 20% of NVidias revenue was based off of black market sales. If NVidia moves to become more legitimate after Hunags departure, that means at a minimum a massive decline in sales to Singaporian based shell companies, which seemingly is a large part of NVidias revenue.
Geopolitically, there is the question of NVidias $25 Million donation to the Trump ballroom and whether or not that caused the current White House to look away from the damages NVidias actions caused.
The company still has to deal with Huang's recklessness. Not just his inability to keep his dick in his pants but we're talking about legitimate business issues, geopolitics and more.
-----
Sleeping with fellow executives also leads to the questions of favoritism and whether or not Jensen Huang made the best decisions for the company, or if various promotions were off of his fetishes or sexual preferences. It's a bad look for his management style and his ability to lead a team on a personal level.
So it's also somewhat serious but more from an internal perspective rather than a country wide geopolitical issue like the Chinese Spy affair.
By close the price movement was consistent with the trend already seen. Trading algorithms reacting to the early news is likely, but ostensibly in the end the humans didn't care. No more than they did in days and weeks before the news broke.
However, what you have failed to establish is that the stock market measures care. Perhaps you're too young to remember, but we lived through a "meme stock" era that taught us that many investors see it as little more than entertainment. At best another form of gambling. Do you think casinos offer care or entertainment?