Nvidia Falls 5.47% on CEO Spy Report, Traders Eye $170.51

Nvidia shares fell 5.47% on Tuesday after reports that CEO Jensen Huang had an affair with an alleged Chinese spy. The stock closed at $168.80 on 420.8 million shares, more than three times its three-month average volume. The company said independent directors and counsel will oversee an investigation into the claims.

The sell-off extends a painful run. Nvidia has now lost ground for six consecutive weeks, its longest losing streak since 2012. The stock sits 29% below its October 6 peak. On Tuesday it was the biggest loser on both the Dow and the S&P 500, according to the analysis.

What does the volume spike signal?

TradingView analyst EmpressBTC, who published the technical breakdown, focuses on two price levels: a reclaimed support line at $170.51 and resistance at $180.31 just above the current price. The stock fell to $166.44 intraday, then climbed back above $170.51.

"Heavy volume near a low can mean sellers are running out, but only a hold above $170.51 would show it," EmpressBTC wrote. The analyst expects a small dip to retest the support line before a bigger bounce develops.

The logic is straightforward. When a stock prints its heaviest turnover in months near a low, buyers often step in. But volume alone proves nothing. The confirmation comes only if price holds the line when tested again.

Why this looks company-specific, not an AI bust

The most telling detail from Tuesday's session: Nvidia's competitors all rose. AMD, Qualcomm, Taiwan Semiconductor and Intel gained ground while Nvidia led the Dow and S&P 500 declines.

"That makes this a company-specific sell-off, not a collapse in AI demand," EmpressBTC concluded. That distinction matters for anyone weighing whether the drop signals broader weakness in the semiconductor trade.

Wall Street has not moved. 78 of 82 analysts still rate Nvidia a buy, with an average price target of $320, according to the analysis.

What is the trading plan?

The setup is a staged recovery play with three targets:

• Target 1: $180.31 — the resistance level sitting just above price
• Target 2: $195.95
• Final target: $209.99 — the November 6 high

The entry condition is specific: a dip into $170.51 that holds. A close below $166.24 cancels the idea entirely. That invalidation level sits just under Tuesday's $166.44 low, giving the trade a defined line in the sand.

How long will the overhang last?

Dan Ives, the widely followed tech analyst, expects the board probe to take 4 to 6 weeks and to weigh on the stock until more news emerges. A shareholder lawsuit has also been filed, adding legal pressure on top of the reputational questions.

The calendar tightens the window. Nvidia reports earnings on November 17. That date now doubles as both a fundamental catalyst and a deadline of sorts: the company must answer questions about its business while the investigation over its CEO remains open.

The risk case is explicit. "If the news gets worse, $166.44 can break," EmpressBTC warned. A loss of that level would void the support-reclaim thesis and open the door to lower prices. Until then, the battle line is $170.51, and the burden of proof sits with the buyers.