Cathie Wood Buys Over $16 Million Nvidia Dip After 4% Plunge as Bulls Face Strong $190 Resistance

TradingKey - Cathie Wood defies the trend to back Nvidia, spending $16 million to buy the dip, but bulls remain stuck at the $190 resistance.

On November 10, Eastern Time, weighed down by the headwind of CEO Jensen Huang facing a compliance investigation by a special committee of the board of directors, Nvidia (NVDA) shares tumbled as much as 6%, approaching the $170 mark, before narrowing the decline to around 4% and then reversing losses to rise 1% in overnight trading, climbing back above $180.

However, as market panic spread, renowned growth stock investor Cathie Wood's ARK Invest chose to buy the dip aggressively, spending $16.88 million to purchase over 90,000 shares of NVDA. Prior to the exposure of Jensen Huang's infidelity scandal, Cathie Wood had already bought the dip for approximately $45.90 million on November 5.

ARK believes that following this sharp pullback, Nvidia's forward P/E ratio has retreated to a historically low range of approximately 28x–30x, offering an attractive risk-reward profile on valuation relative to its high double-digit revenue growth rate. The ARK team assesses that even as Jensen Huang faces a board compliance investigation, Nvidia's absolute monopoly in GPU architecture, NVLink interconnect technology, and the CUDA software ecosystem cannot be replaced by rivals in the short term.

Although Nvidia's fundamentals have not been damaged, its stock price remains constrained by two major headwinds in the short term. First, the investigation by Nvidia's special board committee is still underway, and until the final results are determined, large long-term funds will find it difficult to build substantial long positions due to compliance restrictions. Second, the U.S. is scheduled to release CPI/PPI data this week; if inflation figures remain stubbornly sticky, a surge in U.S. Treasury yields will further compress the overall valuation multiples of tech stocks.

Although Cathie Wood's dip-buying sent a positive signal to the market, candlestick patterns and position distribution indicate that after Nvidia broke below key support at $185–$190, the former swing support zone has transformed into an extremely strong overhead resistance wall of trapped supply, which will severely hinder any subsequent rebound.

Nvidia stock price chart, Source: TradingView

If bulls fail to reclaim $190.00 with heavy volume, the short-term rebound can only be viewed as an oversold technical bounce in a bear market, and Nvidia's stock price will face a secondary retest of $180. If the broader market experiences renewed panic due to U.S. inflation data or the governance investigation, Nvidia may even face downward pressure to test a secondary bottom at $160, which serves as the solid defensive base for long-term institutional buyers.