Nvidia shares plunge amid investigation into CEO Jensen Huang

Nvidia has lost approximately $430 billion in market value following reports regarding CEO Jensen Huang’s personal conduct and potential national security implications. The company’s independent directors have hired outside counsel, led by Joon Kim, to investigate allegations involving an extramarital affair with a businesswoman, Alice Huang.

Reports allege that a business network linked to Alice Huang, who is suspected of having ties to Chinese intelligence, facilitated at least $7.5 billion in Nvidia chip shipments to Chinese companies since 2023. This network reportedly moved approximately 240,000 restricted H100, H200, and A100 processors into China through entities in China and Singapore, including Shanghai Century Litong and Singapore-based Megaspeed.

Senate Democratic Leader Chuck Schumer has demanded answers from the administration and called for tighter export curbs. While Huang has acknowledged unfaithfulness to his wife, Nvidia stated its board has no reason to believe company secrets or national security were compromised. The FBI is reportedly examining whether Huang was targeted by a foreign intelligence operation. The controversy comes ahead of Nvidia’s scheduled earnings report on November 17.