$NVDA · Jose Najarro Stocks · 2026-11-08

Nvidia CEO Jensen Huang has just admitted to cheating on his wife. Meanwhile, Nvidia's board of directors opened an independent investigation.

On overnight trading platforms, we see that Nvidia stock is already trading near $180. This leaves the stock down about 3% from Friday's close, which puts it about 24% below its October high of around $240.

And remember, the stock was already falling before any of this news came out on Sunday.

Yesterday, unfortunately, I was talking about Nvidia with a forward P/E ratio of 13, and I mentioned rumors about Jensen that I didn't want to talk about because they were just rumors.

It is a customer of Nvidia. It buys servers powered by NVIDIA cards and leases out that computing power. Unfortunately, it has been under scrutiny since October of last year regarding whether banned NVIDIA chips are reaching China .

So, Jensen may have cheated on his wife with someone who might hold a senior position at a graphics processing unit (GPU) company, and that company is under scrutiny for potentially sending those chips to China, where it is prohibited .

She reported that she was recruited by China’s Ministry of State Security to gather intelligence and possibly influence NVIDIA to push it to sell its most advanced chips in China.

Fifth, in the current situation, Nvidia's board of directors says there is no reason to believe that national security or Nvidia's secrets have been compromised, but the investigation will examine everything.

Nvidia says Jensen will remain in his position as CEO without interruption. On May 13 of this year, short seller Culper Research published a report that focused heavily on Megaspeed and Nvidia.

The New York Times documented shipments of equipment and systems from Nvidia worth approximately $2 billion for those operations roughly from June 2024 to June.

But in October 2025, Nvidia said its compliance team found that MegaSpeed was owned and operated outside of China and had no Chinese shareholders, and that a site visit found no evidence of a transfer.

Once again, another form of converting some of the chips coming from Nvidia in one way or another. The big claim was that more than 20% of Nvidia's computing revenue in fiscal year 2026 was actually driven by China, right?

She said Nvidia recorded a $5.5 billion write-off, but the 10k report shows that the actual charges for the H20 chip were around $4.5 billion.

Nvidia has talked about these transfers, hasn't it? This is certainly part of it, because it is not just a story of cheating, but it is likely a diversion of chips and also possibly the creation of a market within China.

I think this will be something that causes volatility in the stock market , and we will talk about it a little bit later.

the US government could tighten its grip and put even more pressure on Nvidia regarding export restrictions . As we have seen, they stated that in October 2025 they had already conducted field visits and found no evidence of diversions.

At a meeting in June 2024, just a few months prior, they stated that attempting to assemble data centers with smuggled products was a dead end . On October 29, they told Bloomberg that they had studied all of their graphics processing unit deployments and counted each one.

He also said he believed the US government had done the same, but that this was his personal belief and not a government confirmation.

So, Nvidia is bigger than just one person, right? This is what matters to investors; Because there is a fear at the top levels that Jensen could be sacked from his position as CEO if things go wrong.

Jensen has spoken in numerous interviews about his management approach, and how every executive he has is on top of every detail. So, theoretically, if he fails, dies, or anything happens, there are capable people, and many of them, to take over the leadership of Nvidia.

So, I think Nvidia’s story isn’t a one-man story, but the market might experience volatility because of it. If we see Jensen step down or anything like that happen, the market will punish the stock .

I believe that the business as a whole will be fine. Large cloud companies will continue to purchase Nvidia graphics processing units and systems , won't they? Because Nvidia, once again, has an army of engineers, a huge supply chain, and it has everything.

Jensen is not the one who controls all of this on his own. He largely represents the public face of the company. So I think things are proceeding as usual.

Personally, I don't see any customers canceling their orders as you mentioned. So, the work is perfectly sound. The ratings are already insanely high. As of Friday, the market had a forward price-to-earnings ratio approaching 13, while other semiconductor companies looked rather cheap .

Now, with the overnight drop , the forward price-to-earnings ratio is closer to 12.5. Even if profits decline, and even if revenues slow down, the stock is still trading at a high valuation.

The volatility is going to happen now, and I think that will be the biggest risk facing emotional investors, right? The downside here is that the great company still has a volatile stock.

The first is the risk of changing the CEO. The board supports Jensen today, but the investigation is not yet over. If a change in leadership occurs, there will be uncertainty about who will succeed, and the stock will move even if customers continue to build.

No departures have been announced, but it is a risk that could generate volatility.

The second is political and organizational risks. The Speaker of the House of Representatives requested a briefing on November 18, concerning political credibility , access to officials, and export licenses to China.

All of this could create more volatility. Any headlines about the potential for secrets to be compromised , or any news about the validity of claims regarding ties with China, could all cause a great deal of volatility.

We now have earnings results due on November 17, one day before the briefing. So expect some twists and turns along the way, and I think we'll see an interesting earnings call with a Q&A session and maybe some discussion from Jensen himself.

I used to give a lot of weight to Jensen's words. I generally thought that his legacy, and his concern for his legacy, was what he cared about, wasn't that right? And that will guide every decision he makes. I can no longer assume that, can I?

Because if you are willing to betray your wife, then in my opinion you do not care much about your legacy. So, for me, Jensen's words now carry less weight.

But as far as Nvidia's statements, disclosures, customers, implementation, and other management are concerned, I'm not putting that aside, am I? I believe that Nvidia itself is still a strong company.

I am still verifying what the administration says against what is happening on the ground.

And look, he's only human after all, isn't he? We all make mistakes, and that doesn't justify hurting his family. This does not answer security questions, but it is a reminder that we are investing in the company and not placing any individual in a sacred position.

Now, the real danger, in my opinion, is here, and I have some questions. This is just speculation, and I'm framing it as a question, not an accusation. I don't think Jensen has any top national secrets, do I?

The danger I want the investigators to look into is influence. So, while I don't believe Jensen has any national security secrets to give away, there are other ways he could work, perhaps by transferring certain assets to China or elsewhere if he were to be blackmailed, right?

So for me, my question is, was there any pressure before this came about? Did any pressure influence decisions regarding circumventing export rules to China or persuading officials to relax chip restrictions, or was that risk discovered before it had any effect?

This was probably the first time Jensen had been blackmailed, and Jensen said, "You know what?" I will go to the American officials and we will expose this whole matter. The worst-case scenario is that this has been going on for some time.

The rumors about China's accusations may be true. Again, all of this is just allegations, but he was blackmailed by being told, "Look , we have information that you are cheating on your wife."

We will make this public to your wife and family if you do not do this now.

Here we have no information, and I think that is where the danger lies. If this is not the first time, and if there was a previous blackmail attempt and it was not close to this date, and Jensen had already done something, then this is where the danger lies.

And I think that's what the market sees, isn't it? That is the danger. I don't know if that's true, and obviously we can't know the truth. But the bottom line is, there is less trust in Jensen personally.

But my thesis about Nvidia still stands as long as the evidence holds . The team is strong, the man is there, and the stock is very cheap.

But yes, there are serious questions about this in the next few weeks. The stock will be extremely volatile,