Huang’s affair: Nvidia shares rebound in premarket trade after sharp sell-off, $1.57 trillion in market value wiped out
Shares of Nvidia edged higher in premarket trading on Tuesday as investors assessed the fallout from allegations involving chief executive officer Jensen Huang and a woman identified in media reports as a suspected Chinese intelligence operative.
The stock was trading 1.8% higher at $178.67 as of 4:40 AM ET, recovering some of the losses recorded in the previous session. Nvidia shares plunged more than 4% on Monday after Huang reportedly acknowledged in an email to employees that he had been unfaithful to his wife and had fallen short of his responsibilities as the company's CEO.
The controversy has added to the pressure on the world's leading artificial intelligence (AI) chipmaker, whose shares have been witnessing a prolonged decline.
The allegations centre on Alice Huang, an executive at Singapore-based data centre company Megaspeed, which is reportedly an Nvidia customer.
According to a report published by The New York Times on October 29, US officials had concluded that Alice Huang was allegedly a Chinese intelligence asset who was providing information to Beijing. The report also raised concerns that she may have been involved in directing advanced Nvidia AI chips to China.
US President Donald Trump said on Monday that the Federal Bureau of Investigation (FBI) was investigating the matter.
Nvidia's board of directors has also initiated an independent investigation into reports that Jensen Huang was the target of a foreign intelligence operation.
In a statement issued on Sunday, the company said its board had no reason to believe that US national security interests or Nvidia's confidential corporate information had been compromised.
An independent committee of directors, supported by external legal counsel, will supervise the investigation. Huang has agreed to cooperate with the review and will continue in his position as CEO.
The latest decline has pushed Nvidia shares into bear-market territory, with the stock falling more than 26% from its 52-week high of $243.37.
The correction has wiped out approximately $1.57 trillion in market capitalisation, reducing the company's valuation to around $4.31 trillion at Monday's close from approximately $5.88 trillion at its peak, according to Investing.com data.
The value erased from Nvidia's market capitalisation is greater than the entire current market value of electric vehicle manufacturer Tesla, estimated at approximately $1.49 trillion. However, it remains below SpaceX's estimated valuation of $1.93 trillion.
At the latest quoted price of $178.67, Nvidia shares have declined 14% over the past week and 22% over the previous 30 days. The stock has also lost 18% over three months and 17% over six months.
The sell-off comes ahead of Nvidia's quarterly earnings announcement scheduled for November 17, 2026.
Investors will closely examine the company's financial performance, revenue outlook and management commentary for indications of whether the massive investments in artificial intelligence infrastructure will continue to support demand for its advanced processors.
The earnings announcement is expected to be an important test of investor confidence as Nvidia navigates mounting market pressure and the controversy surrounding its leadership.
For about a decade, Livemint—News Desk has been a credible source for authentic and timely news, and well-researched analysis on national news, business, personal finance, corporates, politics and geopolitics. We bring the latest updates on all the listed companies on BSE and NSE, startups, mutual funds, Union ministries, geopolitics, and untapped human interest stories from around the world, helping our readers to stay informed on the latest developments around the globe. Our Coverage Areas 1. Companies: Comprehensive news and analysis on listed and unlisted companies, corporate announcements, corporate chatter, C-suite, business trends, hiring alerts, layoffs, work-life balance, world's top billionaires and richest and more. 2. Personal finance: Insights into mutual funds, small savings schemes like - PPF, SSY, post office savings scheme, stock to watch, personal loans, credit cards, top bank FDs, real estate, income tax and more. 3. Politics: Comprehensive coverage of general elections, state elections and bypolls, Lok Sabha, Vidhan Sabha, Parliament, PMO, PIB, finance ministry, home ministry, among other union ministries and government departments. 4. National News: From metro cities like Delhi, Mumbai, and e to untapped stories from rural India, we cover human interest, health, education, crime and courts, and law and order, among other areas of public interest. 5. Economy: In-depth analysis of India's macro and micro-economic indicators like- GDP, inflation, forex, fiscal deficit, current account deficit, interest rate cycle, economic recovery, RBI circulars, indirect taxes, GST, Insolvency and Bankruptcy imports, exports and everything that impacts Indian economy. 6. Geopolitics: Well-rounded and deeply researched coverage on US News, Oval Office European Union, Ukraine Russia War, middle-east crisis, royal families and global leaders like - Donald Trump, Vladimir Putin, Kim Jong Un, Xi Jinping and premiers of other leading economies in the world. Meet the Team 1. Gulam Jeelani, Political Affairs Editor 2. Sugam Singhal, Senior Assistant Editor 3. Chanchal, Assistant Editor 4. Sanchari Ghosh, Chief Content Producer 5. Pratik Prashant Mukane, Chief Content Producer 6. Sayantani Biswas, Chief Content Producer 7. Ravi Hari, Deputy Chief Content Producer 8. Garvit Bhirani, Deputy Chief Content Producer 9. Akriti Anand, Senior Content Producer 10. Jocelyn Felix Fernandes, Senior Content Producer 11. Swastika Das Sharma, Content Producer 12. Mausam Jha, Content Producer 13. Riya R Alex, Trainee Content Producer
Catch all the Business News , Market News , Breaking News Events, JIO IPO Listing Today LIVE and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
HomeMarketsStock MarketsJensen Huang scandal: Nvidia shares rebound in premarket after sharp sell-off, $1.57 trillion in market value wiped out
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.