Nvidia stock is pricing in 2 major risks as CEO Jensen Huang's affair fallout plays out Brian Sozzi · Executive Editor Wed, November 11, 2026 at 2:07 PM EST 2 min read NVDA +3.66% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Nvidia's (NVDA) loyal investor base is starting to get antsy about the endgame for newly embattled CEO Jensen Huang.
Huang admitted to the affair on Sunday in an email to employees. Nvidia stock is down about 12% since the situation became public.
"At this point, the market is pricing in two major potential headwinds," strategists at the Kobeissi Letter said. "First, the growing possibility that Jensen Huang will be removed as CEO. Second, [the] possibility that sensitive Nvidia technology or information was compromised."
Nvidia's board of directors launched an independent investigation into reports that the woman Huang had an affair with was allegedly a spy for the Chinese government.
The board said it hired powerful law firm Wachtell, Lipton, Rosen & Katz to conduct the investigation. Former acting US Attorney of the Southern District of New York Joon Kim will run point on the investigation.
While the stock's decline is startling given the strength of Nvidia's business, the reason the stock hasn't fully collapsed is that the masses generally don't expect Huang to be pushed out of the CEO role. And if he is forced out, Nvidia's business is so important to the AI build-out that it can withstand Huang no longer calling shots.
Go deeper with AlphaSpace 174.98 +6.18 (+3.66%) As of 2:35:02 PM EST. Market Open. Call it blind optimism, if you will.
When asked how important Huang is to the next few years of the AI chip darling, Niles Investment Management founder and longtime tech investor Dan Niles told Sozzi Unleashed that he "isn't."
"[Huang's] got a very deep bench, and a historical example is what happened to Apple after Steve Jobs passed away. … Did it collapse?" Niles said. "So Jensen's done a great job of empowering people underneath him. I think one thing that will happen is there will be a successor appointed. The board will force that. And so I think that will occur out of this."
"Are the products in the pipeline, much like when Steve Jobs passed away, that will keep the company going for the next couple of years? Absolutely," Niles added. "But is Jensen very important to the company? Completely. So those are two separate thoughts. But they can both coexist."
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