Nvidia Shares Fall Following Announcement of Independent Investigation Into Chief Executive Officer

NEW YORK — Nvidia shares tumbled over 4 percent in early trading as US financial markets opened for the week, following the company’s announcement of an independent internal investigation into Chief Executive Officer Jensen Huang.

The probe centers on whether Huang was targeted by a Chinese intelligence operation. Nvidia’s Board of Directors announced the inquiry on Sunday, stating that while the board prioritizes US national and economic security, it has no reason to believe that national security or company secrets were compromised.

“NVIDIA’s Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully,” Huang said in a letter to employees. In the same communication, Huang admitted to not being faithful to his wife, though he did not elaborate on details.

The investigation follows a report published in October by The New York Times stating that Huang had a relationship with Alice Huang, a former executive at Megaspeed and an alleged China operative. Megaspeed is a data centre and cloud computing company that serves as a core business partner for Nvidia’s computing power cloud business in the Asia-Pacific region. According to US authorities who investigated the matter, Alice Huang was concluded to be a Chinese intelligence asset.

Chinese Foreign Ministry spokesperson Guo Jiakun dismissed the allegations from Beijing, stating that the Chinese spy narrative is a groundless accusation, slander, and a smear.

The scrutiny comes as Nvidia navigates a complex political and economic landscape. Jensen Huang is the company’s fifth-largest shareholder, owning 3.6 percent of the $4.5 trillion enterprise, according to LSEG data.

Michael Monaghan noted that founder-led companies often outperform because a single person carries the vision, adding that it remains highly improbable that Huang would be removed from his position based on current information. However, Monaghan cautioned that Huang faces strong headwinds in Washington from both export-control hawks and critics of data centre expansion, warning that prolonged uncertainty could empower his detractors.

Nvidia’s board stated that the ongoing independent inquiry will examine all available information.