Nvidia shares drop nearly 6% in pre-market as alleged China spy links put Jensen Huang under board scrutiny
A Ksheerasagar
Shares of US-based technology giant Nvidia witnessed renewed selling pressure in Monday's trade, falling 6% in pre-market trading to $176 apiece after the company's board launched an investigation into Chief Executive Officer Jensen Huang, following his admission of an affair with a woman identified in a series of reports as a suspected Chinese spy.
The shares had already faced significant volatility last week as concerns mounted over Big Tech's spending on AI infrastructure following the Democrats' sweeping victory in the US midterm elections.
This latest controversy has added another layer of uncertainty to the stock, which has been under pressure since hitting its peak and has declined 22% from that level. The development comes just days before the company is scheduled to report its quarterly earnings on November 17.
Over the weekend, Jensen Huang reportedly admitted in an internal staff memo that he had been unfaithful to his wife and apologised to employees, prompting the company's board of directors to take action.
The probe follows reports that Nvidia's chief had been targeted by former Megaspeed International executive Alice Huang, who is suspected of spying for China by US intelligence agencies, according to a Bloomberg report.
The investigation has also brought renewed attention to Huang's future at the company, given Nvidia's status as the world's most valuable chipmaker and the CEO's role as one of the most prominent salesmen of the AI boom.
The leather-jacketed Huang enjoys rock-star status worldwide, particularly in Asia, where he often mingles freely with fans, taking selfies and signing autographs for his devoted followers.
The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, whom US authorities investigated and concluded was a Chinese intelligence asset.
US President Donald Trump, billionaire entrepreneur Elon Musk, and investor Bill Ackman have come out in support of Huang. Nvidia is likely to face a barrage of questions about the controversy at its upcoming earnings report on November 17.
Jensen Huang is a huge figure in the artificial intelligence revolution and a close informal adviser to US President Donald Trump, who has repeatedly spoken out against regulating the industry so as not to let China gain the upper hand in the AI race.
Speaking to reporters on Sunday, Trump praised Huang as an “honorable” person and credited his “amazing” contributions to the US, while saying he had not discussed the controversy with the Nvidia CEO.
Billionaire investor Bill Ackman, founder of Pershing Square Capital Management, said on X that the Nvidia CEO was an “incredible human,” but added that if “indeed this is more than an affair, then it is obviously a real problem.”
“I am hoping for a simple affair, not a risk to our national security,” he added.
Tesla CEO Elon Musk also weighed in, commenting “I agree” on a post by Sequoia partner Shaun Maguire. The post said Huang “did something incredibly dumb” that was “bad for America” but added that “Jensen is irreplaceable for America's AI leadership.”
China swiftly rejected allegations of Beijing's involvement in the controversy
“The so-called Chinese spy allegation is unsubstantiated,” China's Foreign Ministry spokesperson Guo Jiakun said at a regular press briefing in Beijing, Bloomberg reported. “It is nothing but smears against China,” he added.
The episode could also complicate the upcoming summit between Chinese President Xi Jinping and US President Donald Trump at the Asia-Pacific Economic Cooperation (APEC) meeting in Shenzhen next week, according to media reports.
(With inputs from Bloomberg, Reuters)
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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