Nvidia Shares Plunge Over 5% as Jensen Huang’s Affair With Suspected Chinese Spy Sparks Board Probe

Nvidia shares dropped nearly 5% in premarket trading Monday after CEO Jensen Huang admitted to an extramarital affair and the chipmaker's board opened an independent investigation into reports that he had been targeted by a Chinese intelligence operation.

The decline put Nvidia on course to lose more than $200 billion in market value if the losses held through the opening bell and the session. Shares had already fallen 13% through Friday since the first reports about Huang's relationship surfaced.

In a statement released Sunday, Nvidia's board of directors said a committee of independent directors, assisted by outside legal counsel, would investigate the reports. The board said it had no reason to believe U.S. national security or company secrets had been compromised, while expressing confidence in Huang's leadership.

Huang, who co-founded Nvidia in 1993 and has led its rise as a dominant supplier of artificial intelligence chips, acknowledged the affair in a message to employees 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," Huang wrote.

He accepted responsibility for his actions, apologized to his family and colleagues, and pledged to cooperate with the investigation. The message did not identify the woman involved.

The controversy began with an October investigation by The New York Times, which reported that U.S. authorities had examined Alice Huang, a former executive at Singapore-based Megaspeed International, an Nvidia customer.

American intelligence officials reportedly concluded that she was a Chinese intelligence asset who had passed information to Beijing. Megaspeed had separately attracted scrutiny over suspicions that it helped China obtain advanced Nvidia AI chips despite U.S. export restrictions.

The espionage allegations have not been established in public legal proceedings. Nvidia previously said Huang routinely interacted with customer executives and that it had no evidence that sensitive company information had been disclosed.

China rejected the allegations Monday. Foreign Ministry spokesperson Guo Jiakun called the claims unsubstantiated and an attempt to smear Beijing during an official press briefing.

Three Republican committee chairs have also sought answers from Huang. House Foreign Affairs Committee Chairman Brian Mast, House Select Committee on China Chairman John Moolenaar and House Intelligence Committee Chairman Rick Crawford requested a closed-door briefing on Nov. 18.

In their Nov. 4 letter, the lawmakers asked Huang to explain his interactions with Alice Huang and Nvidia's security protocols against foreign espionage. They gave him until Nov. 11 to accept the proposed date or suggest an alternative.

President Donald Trump defended Huang on Sunday when asked about the allegations. "I haven't heard that he's done anything wrong," Trump told reporters, adding that he would be willing to include the Nvidia CEO on an upcoming Asia trip.

Huang will continue leading Nvidia during the investigation, the company has said. The chipmaker is scheduled to report its third-quarter financial results on Nov. 17, a day before the requested congressional briefing.