I just did something extremely rare for me…
I moved 15% of my kids’ Roth IRA into one stock.
Then I put some of my mom’s money into it. And I added to my own retirement account.
I don’t take this lightly. Retirement money is long-term money. It’s not for lotto tickets. And when it comes to my kid’s retirement… I’m extremely careful.
So why this stock? And why now?
Because the headlines are terrible.
The stock is down more than 20% from its October high. The CEO is caught in a scandal straight out of a spy novel. Congress wants answers. And the company’s own board just opened an investigation.
Most traders see that kind of news and run for the exit.
I see a price level that’s been untouched for months… sitting on a level buyers have defended over and over.
It’s a risk/reward I can’t ignore.
The Whole Story
It started at a tech-industry dinner in Taipei.
In June 2024, NVIDIA Corporation (NASDAQ: NVDA) CEO Jensen Huang was photographed beside a woman named Alice Huang (no relation). She was an executive at Megaspeed, a Singapore-based data center company. And an Nvidia customer.
A very big customer…
According to The New York Times, a Megaspeed affiliate bought at least $4.8 billion worth of AI equipment loaded with Nvidia chips between mid-2024 and early 2026.
The orders were so large, they got Washington’s attention. The Commerce Department was already looking into whether Megaspeed helped Chinese firms get around U.S. export rules.
Then, on October 29, a bombshell dropped that almost nobody noticed.
The Times reported that U.S. intelligence concluded Alice Huang was recruited by China’s Ministry of State Security. Her alleged mission? Get close to Jensen and pass information back to Beijing.
Here’s where it gets juicy. Last weekend, Huang came clean.
In a memo to staff, he admitted he’d been unfaithful to his wife, apologized to his family, and pledged to cooperate with the investigation.
And the fallout is just getting started:
- Nvidia’s board launched an independent probe.
- Three House committee chairs requested a closed-door briefing with Huang on November 18.
- Investors are forced to ask the unthinkable: “What is NVDA without Jensen Huang?”
Nvidia says it has no reason to believe any company secrets were compromised.
China calls the spy allegations groundless. Alice Huang hasn’t been charged with anything.
But for a stock that was already down roughly 22% from its October high, uncertainty is the real enemy…
My Trade Plan
Here’s what I keep coming back to: the business didn’t change.
Nvidia still holds massive market share. It sells products the AI buildout doesn’t just want, but needs. And it’s highly profitable.
The biggest “what if” is Jensen stepping down. Wedbush’s Dan Ives puts those odds at 15%, and thinks an exit could knock the stock down another 25%–30%.
Short term, that would hurt. Long term? Apple kept climbing after Steve Jobs. Amazon kept growing after Bezos stepped back. Great businesses can and do outlive their founders.
Then there’s the chart:
- Massive support at $166. Nvidia has bounced from this zone again and again. Most recently, buyers stepped in back in March.
- Stretched to -4 ATR. In the past five years, Nvidia has never held below -3 ATR. Every time it touched that level, the price has bounced.
- A gap to fill. The mean-reversion target sits near $207.
Here’s my plan:
- Entry: $166 support.
- Cut the trade: Below $160. That’s $6 of risk.
- Target: $207. That’s about $40 of upside.
That’s roughly a 7-to-1 risk/reward.
I’m buying shares, not options. The problem here isn’t direction. It’s time.
Earnings will hit on November 17, and Huang’s briefing follows the next day. Options can decay before this story plays out. Buying real shares gives it room to run.
Look, I can’t answer every “why” in this story. Nobody can.
As Tennyson once wrote: “There’s not to reason why, there’s but to do and die.”
You don’t need every answer. You need a process.
Know your level, know where you’re wrong, and act on what you know.
My entire trade process: Join me LIVE.
Be good (and be good to others),
Ben Sturgill
*Past performance does not indicate future results. Not typical.
