NVIDIA (NVDA) Loses $400 Billion in Two Days on CEO Ties Probe

A $400 Billion Two-Day Slide

NVIDIA (NVDA) closed at $168.78 on Tuesday, November 10, down about 5.5% on the session after a 4.3% drop the day before. The stock has lost roughly 9.6% across two trading days, erasing an estimated $400 billion in market value. The selling followed founder and chief executive Jensen Huang's acknowledgment of a past relationship with Alice Huang, a former executive of Megaspread, a Singapore-based data-center company, whom United States intelligence officials are reportedly examining for possible links to Chinese intelligence agencies. The two are not related. In a memo to employees, Jensen Huang admitted the relationship without naming the other party and apologized for the hurt caused to his family. Jensen Huang founded NVIDIA and has led it throughout its rise to the center of the AI chip market, a dependency investors say makes leadership continuity the central question.

The company's board announced on November 8 that it had retained outside counsel for an independent investigation. A Wall Street Journal report identified the firm as Wachtell Lipton, with former federal prosecutor Jun Kim leading the work, which centers on whether foreign intelligence services gained access to the company and whether corporate secrets were exposed. NVIDIA says it has found no basis to conclude that national security or confidential company information was compromised, and it maintains that earlier allegations of chip diversion had already been disproven. The Chinese government has also denied involvement. US authorities are separately weighing whether companies connected to Alice Huang supplied restricted semiconductors to China in breach of export controls. No allegation of illegal exports or intelligence sharing against Jensen Huang has been confirmed to date, and the board has not disclosed the investigation's scope beyond its stated mandate. Until the review reports, the stock is trading on governance risk rather than any confirmed change to the business.

Washington Scrutiny and Wall Street Targets

Federal and congressional scrutiny has multiplied. The Information, a US technology news site, reported on Tuesday that the relationship helped move at least $7.5 billion worth of NVIDIA chips to China; neither the company nor US authorities have verified that figure. NVIDIA maintains there is no reason to believe national security or corporate secrets were damaged. US officials reportedly suspect Alice Huang of cooperating with Chinese intelligence, and the FBI is said to be conducting a separate inquiry. Shareholders have filed a class action. Leaders of a US House committee have demanded a closed-door briefing from Jensen Huang, with a response due today, November 11.

On Wall Street, the debate split along familiar lines. Dan Ives, senior managing director at Yorkville Ives and Company, expects the board's investigation to run four to six weeks, puts the probability of Jensen Huang's removal at 15% and estimates the company could shed 25% to 30% of its value if he departs. The board itself has set no timetable. Gary Black, managing partner at the Future Fund, flagged the absence of an identified successor, arguing the business leans heavily on its founder's technical vision and leadership. Josh Brown, chief executive of Ritholtz Asset Management and a holder of the stock for twelve years, countered that discussing removal without evidence of willful misconduct is premature.

Sell-side desks cut price targets while keeping buy ratings. Citi lowered its target from $315 to $285 and Wells Fargo from $315 to $300. Goldman Sachs held at $300, Bernstein at $400 and Baird at $500, each keeping a constructive view on AI chip demand. Consensus across 62 analysts puts the average target at $325.78, about 93% above Tuesday's close, within a range running from $180 to $515. Even the low end of that range sits above where the stock finished the session.

Price Rebounds Toward Strong Resistance

Shares have steadied since Tuesday's close. COINOTAG data shows NVDA last at $173.12, still down 3.40% over the past 24 hours, within a $166.21 to $183.57 range on active trading volume. Our support and resistance composite rates the $173.92 ceiling at 80/100, sitting directly overhead, while the $164.40 floor carries the same 80/100 rating. The daily RSI reads 27.2, a level typically associated with oversold conditions, though the MACD signal stays bearish and the daily trend points lower. A close above $173.92 would reset the near-term picture for NVDA stock; rejection would leave $164.40 the level to defend while the board's review runs.