Nvidia stocks fall for second straight day after CEO's affair with alleged Chinese spy

Nvidia's shares experienced a more than 6% decline on Tuesday, Nov 10, as the chip giant faced a potential loss of over US$470 billion in market value over two days. The concerns stemmed from allegations surrounding CEO Jensen Huang's relationship with Alice Huang, a Chinese businesswoman suspected of being a spy for Beijing. The relationship allegedly facilitated shipments of Nvidia chips valued at US$7.5 billion to Chinese firms, according to The Information.

Nvidia's board initiated an internal investigation, and independent directors appointed former acting US Attorney Joon Kim and law firm Wachtell, Lipton, Rosen & Katz to lead the inquiry. The FBI is also examining whether Huang was targeted by a foreign intelligence operation. Huang informed employees of his infidelity but provided no details about the affair.

President Donald Trump claimed to have spoken with Huang, who reportedly stated he "absolutely no idea" about the alleged espionage ties. However, Secretary of State Marco Rubio briefed Trump aboard Air Force One en route to China, informing him of US intelligence suggesting Huang's involvement with a Chinese spy. The allegations have heightened scrutiny over Nvidia's governance, export-control compliance, and reliance on Huang's leadership, impacting investor confidence in the company's ability to generate returns from its massive AI infrastructure investments.