Nvidia Drops Nearly 10% in Two Days as Jensen Huang Probe Sparks Market Concerns; Stock May Fall Toward $150

TradingKey - On November 10, Eastern Time, Nvidia (NVDA) shares extended their recent decline, falling 5.47% to close at $168.89 after touching an intraday low of $165.89, with trading volume reaching approximately 427 million shares. Previously, on November 9, Nvidia had dropped 4.27%, bringing its two-day cumulative decline to nearly 10%. In the latest overnight trading, the stock rebounded to around $172.90, but the preceding consecutive declines have pushed it significantly below key moving averages, leaving short-term corrective pressure substantial.

Nvidia's recent stock pressure is closely tied to news of an investigation involving CEO Jensen Huang. On November 8, Nvidia's board of directors announced an independent investigation to look into reports that Huang may have been targeted by a foreign intelligence operation, hiring external legal counsel to assist. Media outlets subsequently revealed that Huang had a personal relationship with a woman suspected by U.S. intelligence agencies of having ties to Chinese intelligence, with reports also involving allegations that he may have helped facilitate at least $7.5 billion in Nvidia chip transactions to China. Currently, these allegations remain under investigation and have not been independently verified. Nvidia's board stated there is currently no reason to believe that U.S. national security or company secrets have been compromised, and Huang has pledged to cooperate with the investigation.

The incident's impact on the stock is primarily reflected in corporate governance and management stability. Huang has led Nvidia for more than 30 years and is the central driver of the company's AI chip business and technology strategy, putting his personal reputation and leadership stability in the market spotlight. At the same time, some members of the U.S. Congress have called for further scrutiny of Nvidia's chip exports to China, urging stricter restrictions. If the investigation leads to a further tightening of export policies, Nvidia's future commercial opportunities in the Chinese market could be affected.

Nvidia Daily Stock Chart, Source: TradingView

Looking at the daily chart of Nvidia's stock price, amid the recent continuous slide, the price action has remained capped by both the 5-day and 10-day short-term moving averages, signaling a visibly weak short-term structure.

In terms of technical indicators, the daily RSI is around 24.3, having entered oversold territory below 30, while the weekly RSI is at about 38.2, also in weak territory. This suggests that the recent pullback has been sharp, though oversold conditions do not mean the stock has confirmed a bottom.

At present, the stock has dropped near the critical support level of $165. If this level fails to hold, further downside potential will open up, potentially sending the stock toward the $150 threshold.

Conversely, if the stock finds support near $165 and stabilizes, it could begin a technical recovery rebound. The primary upside target to watch is the resistance near $170; a breakout above this level would open up upside room toward the $180–$181 resistance zone.