Nvidia Shares Tumble as Board Investigates CEO Jensen Huang Over Foreign Intelligence Claims

Nvidia, the world’s most valuable chipmaker, began the week under pressure. Its board has launched an independent investigation into reports that founder and CEO Jensen Huang was the target of a foreign intelligence effort. The news hit the stock hard on Monday and raised questions about the future of one of the AI boom’s most recognisable leaders.

Board Orders an Independent Investigation

In a statement on November 8, Nvidia’s board said it was starting an independent investigation after recent reporting that Huang had been targeted by a foreign intelligence effort. A committee of independent directors, assisted by outside independent counsel, will oversee the inquiry.

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The board said it has no reason to believe that national security or Nvidia’s secrets were compromised, but the inquiry will examine all available information. It also said Huang fully supports the review and has committed to cooperating, and that it has confidence in him and his leadership team.

What the Reports Allege?

The probe follows a media report from last month that Huang had a relationship with Alice Huang, who is not related to him. She is a former executive of Singapore-based Megaspeed, and the report said US authorities had investigated her and concluded she was a Chinese intelligence asset. It also alleged that she passed information to Beijing.

Huang has told Nvidia’s employees that he was unfaithful to his wife, without giving details of the relationship. Alice Huang did not respond to the media when the story first appeared, and her location could not be determined for comment on Monday. These remain allegations, and the board’s inquiry is still at an early stage.

China Rejects the Spy Claim

China’s Foreign Ministry spokesperson Guo Jiakun dismissed the claims. He called the “Chinese spy narrative” a groundless accusation, slander and a smear. Megaspeed did not immediately respond to a request for comment on Monday, which was a public holiday in Singapore.

Market Reaction: A Sharp Fall in Nvidia Shares

Nvidia shares fell by more than 6% in Frankfurt trading, extending the previous week’s selloff and pushing the stock to fresh multi-month lows. At those levels, the company stood to lose about $270 billion in value from its Friday close, according to LSEG Datastream. The stock also slumped in pre-market trading ahead of the US open.

Key Numbers at a Glance

Detail	Information
Board statement	November 8, 2026
Nvidia share fall (Frankfurt)	More than 6%
Potential value loss	About $270 billion from Friday’s close
TSMC shares	Up 6.5%
Samsung Electronics shares	Up 2.9%
SK Hynix shares	Up 4.7%

Asian Chip Suppliers Rebound

While Nvidia fell, its key Asian suppliers recovered after last week’s selloff in AI-related stocks. TSMC jumped 6.5%, SK Hynix rose 4.7% and Samsung Electronics gained 2.9%.

Seoul Visit Cancelled, AI Day Goes Ahead

The fallout reached South Korea, where Madison Huang, the CEO’s daughter and an Nvidia executive, cancelled a planned visit to Seoul. She had been due to visit the AI startup Rebellions and hold a question-and-answer session with Kakao Mobility. Rebellions said the events were cancelled because of “unavoidable internal circumstances at Nvidia.”

Nvidia AI Day Seoul, a two-day event expected to draw about 2,000 participants to discuss physical AI, agentic AI and infrastructure, will go ahead as planned, according to South Korean media. South Korea’s deputy science minister said the government expects no disruption to contracted deliveries of Nvidia graphics processing units.

Reactions From Business and Political Figures

Several prominent voices commented:

Bill Ackman, founder of Pershing Square Capital Management, called Huang an “incredible human.” He said that if this is more than an affair, “it is obviously a real problem,” and added that he hopes it is a simple affair, not a national security risk.
Elon Musk replied “I agree” to a post saying Huang “did something incredibly dumb” but is “irreplaceable for America’s AI leadership.”
US President Donald Trump said he had not spoken to Huang about the allegations but called him a fine person and an “honorable guy.” The earlier media report had said Trump was briefed on the intelligence findings roughly a year ago.

Analysts: Will Huang Stay, and What Is at Stake?

Chris Weston of Pepperstone said the market reaction shows the news does the stock no favours at a time of debate over data-centre build-outs. However, he did not expect Huang, whom he called the “godfather of AI,” to be replaced. If investors believed he would step down, he said, the stock would face an “absolute bloodbath.”

Analysts also warned that a prolonged probe could delay Nvidia’s investment decisions or product launches, with wider effects on the semiconductor industry, including memory chip prices. Ryu Young-ho of NH Investment & Securities said rivals such as AMD could attract more attention in the short term. He added that Nvidia’s products are hard to replace, which limits the impact, although shipments to China could face further delays depending on how the situation develops.

Why This Matters

Nvidia is central to the US AI boom, and Huang is central to Nvidia. Because of the company’s size, many pension funds also hold its shares passively through index-tracking funds, so a sustained fall can be felt well beyond tech investors. The outcome of the board’s inquiry will be closely watched.

Nvidia

Jensen Huang

Alice Huang

Madison Huang

TSMC

Published Date : November 10, 2026

Author: Jyosri

A Junior Journalist passionate about reporting accurate, engaging, and reader-focused news across technology, business, education, health, entertainment, lifestyle, and current affairs. Dedicated to researching reliable sources, verifying information, and producing clear, factual content that follows ethical journalism standards.

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Why is Nvidia investigating Jensen Huang?

The board began an independent investigation after reports that Huang was the target of a foreign intelligence effort.

How much did Nvidia shares fall?

They fell more than 6% in Frankfurt, putting about $270 billion of value at risk compared with Friday’s close.

Has Nvidia said its secrets were compromised?

No. The board said it has no reason to believe national security or Nvidia secrets were compromised.

How has China responded?

China’s Foreign Ministry called the spy claims groundless, slander and a smear.

Will Nvidia AI Day in Seoul go ahead?

Yes, according to South Korean media, though Madison Huang cancelled her Seoul visit.