Jensen Huang faces probe with Nvidia earnings 8 days away, stock wobbles

Nvidia shares plummeted by up to 4.2% in after-hours trading on November 8 following CEO Jensen Huang's admission of an affair with a Chinese citizen, Alice Huang. The board has launched an investigation into the alleged affair. Huang addressed the situation to his staff via email, stating, "There is no excuse for what I did." Reports suggest Alice Huang is suspected of being a Chinese spy.

Nvidia denies any evidence of US national secrets or internal company information being compromised. The stock decline came at a challenging time for Nvidia, already facing heavy pressure with five consecutive weekly losses and a 8.76% drop last week alone. The stock experienced its worst day since January 2025, falling 9.3% to $181.60 on November 5.

Analysts are divided on the incident's impact, with some expecting a long-term hit and others believing it won't significantly affect Nvidia's value. President Donald Trump has reportedly backed Huang staying in his position. The controversy began when U.S. intelligence agencies discovered Huang's close relationship with Alice Huang, who was feeding information to Beijing, despite sharing the same last name.

Alice Huang previously worked as a television reporter in China before becoming a top executive at Singapore-based data center company Megaspeed, which has been Nvidia's largest customer in Southeast Asia, purchasing more than $4.8 billion worth of Nvidia chips over the past two years. Nvidia, the world's most valuable company, has consistently surpassed Wall Street's earnings forecasts over the past three years, with August profits reaching $59.69 billion.

Nvidia's next earnings report is due on November 17, with analysts anticipating questions about the ongoing investigation.