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Is Nvidia in Big Trouble? Supreme Court Plea Raises Alarms for Investors
U.S. election day came and went. The results will be debated and confirmed in the days ahead. We have a day of break before we move on to the FOMC rate change announcement tomorrow.
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Is Nvidia in Trouble? Supreme Court Plea Raises Alarms for Investors
If you haven’t heard, Nvidia (NVDA) is making news for all the wrong reasons, yet you’d be hard-pressed to find much about it in mainstream media.
Monday night, news broke that Nvidia requested legal immunity from the U.S. Supreme Court over accounting irregularities — and for those of us watching closely, this could have significant implications not just for Nvidia, but for the semiconductor sector as a whole.
And this isn’t Nvidia’s first rodeo with the SEC...
Back in 2003, it faced securities fraud charges and eventually settled. Now, it seems like history is repeating itself — the company is once again on thin ice. This time, Super Micro (SMCI), a major client of Nvidia, is also under investigation, with a delisting threat from Nasdaq if it fails to provide an audited compliance plan by Nov. 16.
For Nvidia, it could be a serious domino effect, especially when we consider that SMCI ranks as their third-largest buyer of GPUs. If SMCI is forced to clean up or, worse, delist, the ripple effects could hit Nvidia’s lending program and potentially tighten its cash flow.
Citadel CEO Ken Griffin saw the writing on the wall and sold nearly $1 billion in Nvidia stock — an eye-popping move that raises serious questions. What does he know that we don’t?
Nvidia’s stock hasn’t shown any response to these headwinds, and given the past pullbacks in the semiconductor sector, we could see some troubling parallels.
Even without insider info, traders need to read between the lines. Nvidia’s recent petition to the Supreme Court is a massive red flag. For Nvidia to preemptively ask for immunity signals that it may anticipate serious financial fallout.
We’ve seen Nvidia’s chart show bullishness, but this level of scrutiny — coupled with Griffin’s massive exit — suggests that there could be more downside risk ahead for semiconductor ETFs and leveraged plays.
If Nvidia doesn’t get the immunity it’s seeking, the company could be heading for a steep correction. And with all this mounting uncertainty, even those heavily bullish on semiconductors might want to start considering some protective strategies.
For those holding Nvidia or any associated ETFs, it’s a good idea to keep an eye on the Nov. 16 deadline and prepare for possible turbulence.
The takeaway here is simple: Don’t ignore the signs.
Nvidia has managed to bounce back from scandal before, but this time, it may not have the same safety net. Traders need to keep a close watch and, if they’re overexposed, think about scaling back until the dust settles.
Today’s Daily Chart Setup: Oceaneering International (OII)
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