Nvidia shares fall as board investigates CEO Jensen Huang over spy claims

Nvidia shares fell on Monday after the company opened an internal investigation into whether CEO Jensen Huang had been targeted by a foreign intelligence effort. The probe followed a media report that Huang had a close relationship with a Chinese businesswoman who allegedly passed information to Beijing.

Huang told Nvidia employees that he had been unfaithful to his wife, without disclosing details of the relationship. He also said he would cooperate fully with the independent investigation announced by Nvidia's board.

The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, who U.S. authorities investigated and concluded was a Chinese intelligence asset. Alice Huang did not respond to the New York Times when it first reported her relationship with Huang, and Reuters could not determine her location to seek comment.

Nvidia's board said it had no reason to believe that U.S. national security or Nvidia's confidential information had been compromised. The board also expressed confidence in Huang and his leadership team.

Share price moves

Nvidia shares fell 4.4% in premarket trading at 5:15 a.m. ET on Monday, according to Axios. The decline followed Friday's Nasdaq closing price of $186.64. The move represented a potential loss of around $199 billion in market value.

Nvidia's shares tumbled more than 6% in Frankfurt trading, extending last week's selloff and pushing the stock to fresh multi-month lows. At those levels, the chipmaker stood to lose about US$270 billion from its closing price on Nov 6, according to LSEG Datastream.

Nvidia shares fell about 3.4% in after-hours trading following an internal investigation into CEO Jensen Huang's alleged ties to a Chinese intelligence asset.

Reaction and related developments

Chinese Foreign Ministry spokesperson Guo Jiakun told reporters in Beijing: "The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear."

US President Donald Trump said on Sunday he had not spoken to Huang about the allegations, but called him a fine person. "I hope everything's fine. He's done such an incredible job," he added. When asked if he believed he should have acted on intelligence when he was briefed about it, Trump said: "No, I don't think so. I think he's an honorable guy. I think he probably has an excuse for it. You have to hear it."

Billionaire investor Bill Ackman, founder of Pershing Square Capital Management, said on X the Nvidia CEO was an "incredible human", but if "indeed this is more than an affair, then it is obviously a real problem". "I am hoping for a simple affair, not a risk to our national security," he said.

Tesla CEO Elon Musk commented, "I agree", on a post by Sequoia partner Shaun Maguire that said Huang "did something incredibly dumb" that was "bad for America" but that "Jensen is irreplaceable for America's AI leadership".

Madison Huang, Huang's daughter and an Nvidia executive, canceled a planned visit to Seoul for an Nvidia conference that was set to begin on Monday, according to companies she had been scheduled to meet. Rebellions said the events were canceled due to "unavoidable internal circumstances at Nvidia." Nvidia AI Day Seoul, a two-day event expected to draw about 2,000 participants to discuss physical AI, agentic AI and infrastructure, will proceed as planned, according to South Korean media.

Shares in Nvidia's key Asian chip suppliers rebounded on Monday after last week's selloff of AI-related stocks, with TSMC closing 4.7% higher, while Samsung Electronics and SK Hynix ending up 0.6% and 0.4%, respectively. Other sources reported TSMC shares jumped 6.5%, while those in Samsung and SK Hynix climbed 2.9% and 4.7%, respectively.

South Korea's deputy science minister said on Monday the government expected no disruptions to contracted deliveries of Nvidia graphics processing units despite issues currently facing the company.

Why it matters

Nvidia is the world's most valuable chipmaker and its CEO is the most prolific salesman of the AI boom. Analysts said a prolonged investigation or internal review could potentially delay Nvidia's investment decisions or product launches, with broader implications for the semiconductor industry. Nvidia is scheduled to report its third-quarter fiscal 2027 results on November 17. On November 18, three Republican House committee chairs have requested a closed-door briefing with Huang about the allegations and Nvidia's safeguards against foreign espionage.

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Sources

• lufkindailynews.com: Nvidia's shares slide as chip giant probes CEO over spy claims | Business | lufkindailynews.com
• economictimes.indiatimes.com: NVDA stock price today: Nvidia shares slide 5% after Jensen Huang’s affair admission as China spy probe puts AI giant’s leadership under scrutiny – Can it survive the CEO crisis? - The Economic Times
• straitstimes.com: Nvidia shares fall as CEO probe rattles investors | The Straits Times
• international.astroawani.com: Nvidia's shares slide as chip giant probes CEO over spy claims | Awani International

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.