Nvidia shares NVDA have come under pressure due to scrutiny surrounding CEO Jensen Huang’s personal relationship with a Chinese businesswoman and concerns about the durability of the artificial intelligence boom
The stock fell more than 5% on Tuesday following a 4% decline on Monday. It had also dropped more than 9% last Thursday and has lost more than one-fourth of its value over the past month.
The selloff has also prompted investors to consider whether the recent decline presents an opportunity to buy the dip.
Michael Burry believes Nvidia could soon become an attractive trading opportunity, although the investor remains skeptical about its long-term value and competitive position.
Burry on Nvidia
Michael Burry, famous for predicting the 2008 financial crisis, said that while Nvidia could become a compelling trade in the near term, he is not convinced about its prospects as a long-term investment.
“I am not tempted as a long-term hold from here, but I imagine the whole market is going to think this is a heck of a trade fairly soon,” The Big Short investor said.
Burry’s main concern is the durability of Nvidia’s competitive advantage over the coming years.
“Still, I believe Nvidia’s competitive advantage will shrink over the next five years,” he said, warning that closer scrutiny of Nvidia’s China chip trade and its dealings across the AI industry could accelerate that erosion.
Burry has been a skeptic of the AI trade and has compared the current AI and chip boom with historical market crashes, including the dot-com bubble.
He had also been shorting Nvidia shares until September, when he exited some of his put options.
Jensen Huang’s relationship draws scrutiny
The latest pressure on Nvidia comes amid reports about Huang’s relationship with a Chinese businesswoman suspected of working for Beijing.
The New York Times reported last month that Huang had a relationship with Alice Huang, a former executive at Singapore-based Megaspeed.
US authorities believe Alice is a Chinese agent and was involved in the transfer of information to Beijing.
Huang acknowledged in a message to Nvidia employees on November 8 that he had been unfaithful to his wife, although he did not identify the woman involved.
Meanwhile, Nvidia’s board of directors has opened an independent investigation into reports that Huang may have been targeted by a foreign intelligence effort.
The board has said it has no reason to believe that company secrets or US national security were compromised. Huang remains CEO and has committed to cooperating with the investigation.
U.S. President Donald Trump has also expressed confidence in Huang and said he would even be willing to take the Nvidia chief executive to China alongside other top business leaders for next week’s APEC summit.
Huang has also been summoned by three House Republican committee chairmen to appear for a joint, closed-door congressional briefing on November 18, 2026.
Nvidia is scheduled to report its third-quarter earnings on November 17.
Wall Street analysts assess Nvidia stock
Wall Street analysts have so far shown a limited reaction to the latest disclosures, with the average price target for Nvidia shares standing at around $332, according to FactSet.
Citi analyst Atif Malik, however, lowered his price target to $285 from $315, citing lower valuations across chip stocks and the investigation involving Nvidia’s CEO.
Malik said, “long-term leadership stability risk is among key investor concerns”.
APAC Research upgraded Nvidia to Buy, describing the investigation as more of a public-relations and damage-control exercise than evidence that Huang had been compromised.
The research firm said it would be surprised if the stock did not rebound, while acknowledging the uncertainty surrounding the situation.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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