Nvidia shares fall as board investigates Huang’s relationship

Nvidia shares fell 5% on Monday after the chipmaker opened an investigation into whether CEO Jensen Huang was targeted by a foreign intelligence operation. The company’s market value dropped by $330bn. Huang acknowledged an affair with Alice Huang, an executive linked to Singapore-based datacentre company Megaspeed. US intelligence officials reportedly believed she was gathering information for China, which rejected the allegations.

Nvidia’s board said it had no reason to believe company secrets or US national security had been compromised, expressed confidence in Huang and pledged to examine all available information. Republican lawmakers requested a closed-door briefing on his relationship and Nvidia’s protections against foreign espionage. Democratic leader Hakeem Jeffries called for more information and tighter restrictions on chip sales to China.

Separately, the New York Times reported that a commerce department investigation into suspected chip smuggling by Megaspeed was transferred to the justice department after Nvidia’s general counsel sought information about the case. The justice department is reportedly conducting a criminal inquiry. Nvidia and Megaspeed previously denied diverting chips in violation of export restrictions. Donald Trump, Elon Musk and prominent investors supported Huang as the episode intensified scrutiny of Nvidia’s leadership and its role in US-China AI competition.