Nvidia Stock Falls 4% as CEO Jensen Huang Faces Spy Allegations

Nvidia, the world’s leading AI chipmaker, saw its stock tumble more than 4% on Monday after CEO Jensen Huang acknowledged an extramarital affair with a businesswoman whom U.S. intelligence agencies have identified as a Chinese spy. The company’s board has launched an independent investigation into whether Huang was targeted as part of a foreign intelligence operation.

U.S. intelligence agencies identified the woman, Alice Huang, as an executive at cloud company Megaspeed, a Nvidia partner, and alleged that she passed sensitive information to Beijing. In a memo sent to employees on Sunday, Jensen Huang apologized to his family and staff and pledged full cooperation with the board’s review. Nvidia said Huang “fully supports the review and has committed to cooperating with it.”

The sell-off erased nearly $200 billion from Nvidia’s market valuation, pushing the stock to its lowest level since late March. Analyst Dan Ives of Yorkville Ives & Co. called the situation a “black eye moment” for Huang, warning that it could prompt congressional inquiries and create sustained risk for the stock—particularly because Huang is considered central to Nvidia’s global AI strategy.

China’s Foreign Ministry denied the allegations, calling the spy narrative “groundless.”

Despite Nvidia’s sharp decline, the broader market rallied strongly. The Nasdaq 100 jumped more than 3% as other chip stocks rebounded from last week’s AI sell-off.

Source: CNBC – Nvidia stock falls 4% as scrutiny turns to Jensen Huang’s affair with alleged Chinese spy