$NVDA · The Real Investment Show · 2026-11-09

Uh, coming up on the 17th is Nvidia. So, we'll have their report coming out. Of course, Nvidia making the news over the weekend. The stock's going to trade down about 4% this morning on news that Jensen Wang had an affair.

That's not the problem. The affair isn't the problem. It was potentially with a Chinese spy alleged. It's all alleged right now, but there's now been a formation of an internal investigation in the company.

But the reason the stock is trading down today is that Jensen Wang was one of the most because of the size of his company and the success of Nvidia and the importance of Nvidia into the AI buildout.

Jensen Wang has had an a very uh overweight voice with the administration in particular and government about controls over chip spending and those type chip restrictions sorry not spending but on chip restrictions shipment restrictions etc.

He's had a lot of sway in keeping those pathways open particularly for the H200 chips as well as chips being sold directly to China. He's kept a lot of that been able because of of the force of his voice has been able to really keep a lot of that flow going.

The concern this morning and why the stock's trading down about 4% pre-market is that this affair now with this potential and look it's all alleged, right? We don't know any other facts yet, but the risk to Nvidia is is that all of a sudden he may lose some of that standing within or some of his control over restrictions on chip exports as well as restrictions on chip development.

Um so that potentially could weigh on Nvidia's earnings going forward if rest if more and more restrictions are put on Nvidia particularly on the H200 chips which are very important.

So we want to keep a watch on that. That should certainly have uh an impact. Now the stock's down about 20% over the course of the last month. It's been under a pretty brutal sell-off. It's getting decently oversold here.

Like and again, if this news I think if this news was was much worse than expected, right, the market already kind of knows about a lot of this. This has been going on for a few days, but the really kind of the bombshell hit over the weekend.

Um, a lot of this been I think the stock would have been a lot more than 4%, but the stock's already been under a lot of pressure now for the last month, particularly because of what's going on with the AI trade. It's extremely oversold here.

So, again, uh, if you own Nvidia, and we do, we own Nvidia. Uh, we're not making any big rat, you know, kind of moves right now. Want to wait for earnings, see how earnings come out. earnings should be good and we'll probably get at the time of that earnings release and and there's a hearing scheduled to start on the 18th, the day after they report their earnings, but we should get some insight from CEO Jensen Wang about what's going on here and what it means potentially for the company.

Um, or if there's a session in place, if something comes along and he has to step down, is there a succession plan in place for J for somebody to take over for Jensen Wang? And what does that mean for Nvidia?

So, there's there's certainly some risk here with the stock. you certainly need to be paying attention to it. But again, kind of knee-jerk reactions to headlines this morning, but over the next few days, the markets are going to start to sort through this very very quickly.

And we'll see if the stock remains under pressure, you know, we'll have to start kind of reconsidering position weights and sizes and portfolios.

we're going to have a hearing probably starting uh November the 18th after Nvidia announces earnings based on this whole scandal around this affair with the Chinese spy.