Our Take: Nvidia Stock Bounces, but the Huang Probe Isn’t Priced Out
By Tech & Money Press · Our Take on Nvidia and the board’s review of CEO Jensen Huang · November 11, 2026
Nvidia finally got a green day. After two sessions that wiped out close to a tenth of its value, Nvidia (NVDA) was trading at about $175.30 as of 11:14 a.m. ET Wednesday, up about 4% from Tuesday’s close of $168.89, according to Webull data. Chip stocks rallied broadly after CoreWeave’s strong quarter, and Nvidia went along for the ride.
A one-day bounce doesn’t settle the question that knocked the stock down in the first place. Nvidia’s board is investigating its founder and CEO, and the company reports third-quarter results in six days. For now, the market is treating this as a leadership problem, not a demand problem. We think that’s the right read. It’s also why the discount may not close quickly.
What happened
On Sunday, Nov. 8, Nvidia’s board said it was opening an independent investigation “in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort.” A committee of independent directors, working with outside counsel, will oversee it. The board said it has “no reason to believe that either national security or NVIDIA secrets were compromised,” and that it “has confidence in Jensen and his leadership team.”
The reports, from The New York Times and the Financial Times, said U.S. intelligence agencies believe Alice Huang, an executive at the cloud company Megaspeed, was passing information to Beijing, CNBC reported. In an email to staff, Huang admitted an affair and said he had “fallen short” of his responsibilities. China’s Foreign Ministry called the spy allegation unsubstantiated, according to Reuters.
The selling was fast. Webull data show Nvidia closed at $186.64 on Friday, Nov. 6, fell 4.27% to $178.67 on Monday and dropped another 5.5% to $168.89 on Tuesday. That’s a two-day decline of about 9.5%. Pressure also came from Washington: we reported that a senior Republican on the Senate Banking Committee called on Huang to resign, and our coverage of Nvidia shedding $430 billion in two days tracked the full fallout.
Why the market cares this much about one person
Nvidia isn’t a company where investors can easily separate the strategy from the founder. Huang co-founded it, has run it from the start, and is the public face of almost every major product launch and customer deal. Dan Ives of Yorkville Ives & Co. told CNBC that any talk of replacing him is “comedy,” but he also named the real issue: “Does Jensen stay on as CEO? The Street would say probably likely, but given the board investigation, anything could happen, and that creates a huge uncertainty.”
That uncertainty is what the market is pricing. Rivals didn’t fall with Nvidia. On Monday, while Nvidia slid, Advanced Micro Devices jumped 13.26% and Broadcom gained 8.78%, according to CNBC. When one name drops and its closest competitors rally, investors are repricing a company-specific risk, not the whole AI trade.
The probe itself also matters. Board investigations run on their own timeline, and nobody outside the company knows how long this one will take. We looked at the person leading it in Meet the former prosecutor Nvidia hired to investigate the Jensen Huang spy scandal. Until it ends, every headline about it can move the stock.
The numbers that haven’t changed
Here’s the other side. Nothing reported so far points to a hit to Nvidia’s business. In August, Nvidia guided third-quarter fiscal 2027 revenue to $108 billion, plus or minus 2%, after second-quarter revenue of $96.2 billion. That outlook assumed no data center compute revenue from China.
Wednesday’s news backed up the demand picture. CoreWeave, one of Nvidia’s biggest cloud customers, raised its 2026 revenue forecast to $13.0 billion to $13.3 billion and reported a backlog of about $132.5 billion. CEO Michael Intrator told CNBC that “demand for the infrastructure is and remains overwhelming.” We covered that report in our CoreWeave Our Take.
The valuation has also reset. At about $175.30, Nvidia trades at roughly 22 times trailing earnings per share of $7.91, based on Webull data. The stock is about 28% below its 52-week high of $243.37 and only about 7% above its 52-week low of $163.90.
Our Take
We see Wednesday’s move as a relief bounce inside a stock that’s still under a cloud. Nvidia’s business isn’t the problem. The problem is that investors can’t put a number on the leadership question, and markets charge a discount for risks they can’t size.
Three things could close that discount. The first is the board finishing its review and confirming its view that no secrets were compromised. The second is a clean Nov. 17 report, with revenue at or above the $108 billion guide and a fourth-quarter outlook that shows demand still running ahead of supply. The third is time. Customers keep ordering, and the story fades.
The bigger risk isn’t the affair. It’s the politics. Calls for Huang to resign have come from Capitol Hill, and Nvidia’s China exposure has long made it a target in Washington. If the probe turns into a long political fight, it could drag on the stock even with strong earnings. That’s why we’d watch the earnings call as much for what management says about governance as for the numbers.
For traders, this is now an event-driven stock. For longer-term investors, the question is simple: does a roughly 22x trailing multiple on the AI chip leader already price in a messy few months? We think it prices in a lot. But “a lot” isn’t the same as everything, and a second leg down is possible if the review uncovers more.
The levels we are watching
Nvidia fell from about $243 in early October to Tuesday’s close of $168.89. Here are the levels on the daily chart:
- Resistance 1: $185.22, Friday’s low. Monday’s gap down left an open window between $179.92 and $185.22. Filling it would be the first real sign of repair.
- Resistance 2: $200.13, the Nov. 4 close and the last level before the selloff sped up.
- Support 1: $165.89, Tuesday’s intraday low.
- Support 2: $163.90, the 52-week low. A daily close below it would put the stock at a new one-year low going into earnings.
Intraday prices can swing a lot before the 4 p.m. close, so a bounce isn’t a reversal until the stock holds it. Wednesday is Veterans Day: stocks trade normal hours, but the U.S. bond market is closed.
Key takeaways
- Nvidia was up about 4% at roughly $175.30 as of 11:14 a.m. ET Wednesday (Webull), after a two-day drop of about 9.5%.
- The board opened an independent investigation on Nov. 8 and said it has no reason to believe national security or company secrets were compromised.
- The selloff was company-specific: AMD and Broadcom rallied on Monday while Nvidia fell.
- Nvidia’s Q3 outlook is $108 billion, plus or minus 2%. Results come Nov. 17 after the close, with a call at 5 p.m. ET.
- Watch $185.22 as resistance and $165.89 and $163.90 as support.
Disclaimer: This article is for informational and educational purposes only and is not financial advice. Tech & Money Press is not a registered investment advisor. Trading stocks involves risk, including the loss of your investment. Do your own research and consult a licensed professional before making any investment decisions.
Sources: Statement from NVIDIA Board of Directors, Nov. 8, 2026. NVIDIA Sets Conference Call for Third-Quarter Financial Results, Oct. 28, 2026. NVIDIA Announces Financial Results for Second Quarter Fiscal 2027. CNBC: Nvidia stock falls 4% as scrutiny turns to Jensen Huang’s affair with alleged Chinese spy. CNBC: Stocks making the biggest moves Wednesday. CNBC: CoreWeave soars as CEO reaffirms AI compute demand. NVDA daily prices, intraday quote (11:14 a.m. ET, Nov. 11), P/E and 52-week range: Webull.
Cover photo: Nvidia headquarters, Santa Clara, by Coolcaesar / Wikimedia Commons, CC BY-SA 4.0.