Nvidia stock rose more than 5% before Wednesday’s open, clawing back most of Tuesday’s 5.47% drop. The bounce came hours after a Republican senator told CEO Jensen Huang to resign.
Today is also Huang’s deadline to tell Congress whether he will answer questions about alleged Chinese spying. Nvidia shed about $430 billion in market value across November 9 and 10.
Why Does a Senator Say Huang Has to Go?
Sen. Kevin Cramer of North Dakota sits on the Senate Banking Committee. That panel oversees bills that could curb Nvidia chip sales to China.
He told Politico late Tuesday that the CEO poses a security risk.
“The potential for extortion is so tremendous that something as sensitive as Nvidia chips, I just think he’s got to go.”
US officials suspect Alice Huang, a former executive at Nvidia customer Megaspeed, of working for Chinese intelligence. That claim remains unproven. Jensen Huang admitted an affair with her in a November 8 memo to staff.
Former White House economic adviser Larry Kudlow also urged Huang to step down. In contrast, the board still backs him, and Trump backs Jensen Huang staying on.
What Are Nvidia Traders Pricing In Before Earnings?
The board’s outside probe, run by law firm Wachtell Lipton, has found no sign so far that secrets or national security were compromised.
Meanwhile, CNBC host Jim Cramer pitched a fix on Mad Money. Under his plan:
- Huang takes leave
- Executive Ian Buck steps in, and
- Nvidia pairs strong earnings with a large buyback.
Options traders expect calm today. Contracts expiring November 11 priced a move of about 2.5%, or $171.56 to $180.30, according to OptionCharts.
Next week looks rougher. Implied volatility, a gauge of expected swings, nearly doubled to 59.3% since mid-October.
Trader Heisenberg said a firm break above $180 could open $186.64 before earnings, if Tuesday’s lows hold. That target matches the November 6 close flagged in BeInCrypto’s Nov. 11 deadline preview.
Nvidia reports earnings on November 17, a day before the proposed briefing. House Foreign Affairs Chairman Brian Mast is reportedly “prepared to subpoena” Huang if he misses today’s deadline.
As of Wednesday morning, Nvidia had not said whether Huang will attend. Meanwhile, the China chip bills are in play for this year’s must-pass defense bill.
