Nvidia (NVDA) Stock Is Trending in Pre-Market: Here’s What Is Happening

Nvidia Corp. (NASDAQ:NVDA) shares are trending on Thursday.

Second Affair Report Weighs on Nvidia Stock

Shares of the Californian developer of AI and graphics chips fell 7.06% to 161.47 in the pre-market trading session on Thursday following the report that CEO Jensen Huang had a second affair and the board may remove him.

The New York Times reported Wednesday that Huang had a second extramarital affair, this time with Kimberly Powell, Nvidia’s vice president of health care.

According to the report, the board is preparing to remove Huang and could meet as soon as Thursday.

The recent affair news follows Huang’s admission, in a company memo, of an affair with Alice Huang, an executive at Singapore-based Megaspeed. U.S. intelligence officials reportedly believe she is a Chinese spy.

Congress Targets Nvidia’s China Chip Access

Congress is also moving to tighten limits on China’s access to Nvidia’s advanced AI chips through the Senate’s fiscal 2027 defense package.

Nvidia’s H200 shipments made up less than 1% of its latest quarterly Data Center revenue, and it booked a $400 million H200 inventory charge in the first half of fiscal 2027.

Ives Calls Huang Irreplaceable, Burry Sees Selloff as Overdone

Dan Ives of Yorkville Ives said on a podcast with Anthony Pompliano that Huang is "actually irreplaceable" and Nvidia has no succession plan. He estimated an immediate exit would initially send stocks down 25% to 30%.

Investor Michael Burry took a different view on Tuesday. The "Big Short" fame investor, who is known for predicting the 2008 housing market crash, said in a Substack post that he was "a bit shocked at how the market has turned on the company."

Burry doubts the scandal will hurt Nvidia’s economics tremendously. But he warned its competitive advantage could shrink faster than he expected over the next five years, citing the danger of a U.S. crackdown on chip trade in China and investigations into its business practices.

Trading Metrics, Technical Analysis

NVIDIA has a market capitalization of $4.19 trillion. Over the past 52 weeks, its stock has traded between a high of $243.37 and a low of $164.27.

The Relative Strength Index (RSI) of NVDA stands at 28.74.

The tech stock has declined 10.36% over the past 12 months and 11.33% over the last five trading days.

Price Action: On Wednesday, NVDA closed at $173.73, up 2.92%, according to Benzinga Pro data.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock