Nvidia Stock Falls After Board Opens Probe Into CEO Jensen Huang
Nvidia's board has opened an independent investigation into CEO Jensen Huang over a relationship with a Chinese businesswoman accused of gathering intelligence for Beijing. Shares fell between 4% and 5% in early trading on Monday, November 9, as Republican lawmakers sought a closed-door briefing.
Nvidia shares fell by roughly 4% to 5% in pre-market and early trading on Monday, November 9, 2026, after the company's board opened an independent investigation into chief executive Jensen Huang. The stock market reaction to the Nvidia stock slide came after reports linked Huang to a Chinese businesswoman accused of passing information to Beijing.
Nvidia is the world's most valuable chipmaker, and Huang is its most prominent salesman of the artificial intelligence boom. Investors are now weighing what the probe could mean for his future.
The board said it had no reason to believe US national security or Nvidia's confidential information had been compromised. Its inquiry, overseen by a committee of directors and external legal counsel, will examine whether Huang was targeted by a foreign intelligence effort. Huang fully backs the review, the board said.
"The Board prioritizes US national and economic security, which is paramount to the interests of NVIDIA and its shareholders," it said in a statement.
What Huang has said
Huang, 63, acknowledged the relationship in a staff memo on Sunday. "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," he wrote.
In late October, Huang told Bloomberg News that his dealings with the woman, Alice Huang, were related to her company, Megaspeed. He called them "completely normal and not unusual." The two are not related despite sharing a surname.
The allegations first emerged in a New York Times investigation late last month. It reported that US intelligence officials believed Alice Huang had been recruited by Beijing to gather information about Nvidia's chief executive and possibly influence the company's chip sales to China.
Alice Huang, a former senior executive at Megaspeed International, has not publicly responded, and her whereabouts are unknown. The New York Times reported that Megaspeed had bought about $4.8bn in equipment from Nvidia. What information she allegedly obtained, and how much Huang knew, remain unclear.
Political and market fallout
Republican lawmakers have expressed alarm. They have asked Huang to give the House foreign affairs and intelligence committees a closed-door briefing next week on Nvidia's security protocols against foreign adversary espionage.
President Donald Trump initially gave Huang the benefit of the doubt, according to Reuters market commentary. He also faces questions over reports that he did not act when intelligence officials first briefed him on the matter several months ago.
Nvidia's market capitalization of $4.5 trillion is higher than Japan's gross domestic product. The controversy comes as Washington tries to stop China from obtaining advanced American chips, including Nvidia's most powerful AI processors.
The slide adds to a nervous start to the week for tech. The AI investment sector has just had its worst week in well over a year, despite a relief rally on Friday. Reuters said markets may now be pricing in the risk of Huang's removal, and that rivals such as AMD could benefit.
US consumer price inflation data due Tuesday tops this week's economic calendar.
