Nvidia shares have plunged after the chipmaker launched an independent investigation into reports that its chief executive, Jensen Huang, was targeted by a suspected Chinese intelligence operation.
Shares in Nvidia fell sharply on Monday after the company’s board launched an independent investigation into reports that its chief executive, Jensen Huang, was targeted by a suspected Chinese intelligence operation.
The development followed reports linking Huang to Alice Huang, a Chinese business executive suspected by US intelligence officials of gathering information for Beijing.
Nvidia shares dropped by nearly nine per cent at one point during Monday’s trading session before recovering some losses. By 1610 GMT, the stock was down 5.5 per cent.
According to a report by The New York Times, Alice Huang, also known as Huang Le, is a former executive linked to Singapore-based data centre company Megaspeed.
The newspaper reported that she had developed a close relationship with the Nvidia chief, potentially giving her access to sensitive information about US artificial intelligence policy and developments.
Alice Huang is not related to Jensen Huang, who was born in Taiwan and is 63 years old.
In a message to employees, the Nvidia chief acknowledged being unfaithful to his wife and apologised for the impact of his actions on his family.
“I was unfaithful to my wife,” Huang said. “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”
Nvidia Board Opens Independent Investigation
Nvidia’s board announced on Sunday that it had opened an independent investigation following reports that its founder and chief executive had been the target of a foreign intelligence operation.
The board said it had no reason to believe that national security or Nvidia’s confidential information had been compromised but would examine all available information.
The investigation has raised concerns about the potential implications for Nvidia, a global leader in producing semiconductors used to train and operate artificial intelligence systems.
Megaspeed has also reportedly faced scrutiny over allegations that Nvidia’s advanced AI chips were being redirected to China, in violation of US export restrictions.
China Rejects Espionage Allegations
China has dismissed the allegations linking Alice Huang to an intelligence operation, describing them as unfounded.
Speaking at a regular briefing on Monday, Chinese Foreign Ministry spokesman Guo Jiakun said the narrative of a Chinese spy was an attempt to vilify and smear the country.
The allegations come amid growing technological competition between Washington and Beijing, particularly over access to advanced semiconductor technology.
US restrictions have limited China’s access to some of the world’s most sophisticated AI chips.
Jensen Huang has also maintained close informal ties with US President Donald Trump and has been involved in discussions surrounding American technology policy.
The New York Times reported that Alice Huang’s relationship with the Nvidia chief could have provided her with insights into Trump’s thinking on artificial intelligence.
Trump, speaking to reporters on Sunday, described Huang as a fine and honourable person, adding that he hoped everything would be fine.
US Lawmakers Seek Briefing
The controversy has also attracted attention from US lawmakers.
The House Select Committee on China reportedly invited Huang to Washington for a closed-door briefing on November 18 to discuss Nvidia’s security protocols.
Technology analyst Dan Ives of investment bank Yorkville Ives described the situation as a major reputational setback for Huang.
He predicted that the controversy could trigger several congressional inquiries and put additional pressure on Nvidia’s shares.
Meanwhile, George Chen, a partner and chair of digital practice at The Asia Group, cautioned against reaching conclusions about Huang’s potential national security implications before the facts were established.
Nvidia remains one of the world’s most valuable companies, with its chips playing a central role in the global artificial intelligence industry.
The outcome of the board’s investigation could have significant implications for the company’s leadership, reputation and relationship with US policymakers.