Nvidia shares tumble over internal probe into CEO's alleged foreign ties

Nvidia's shares dropped over 6% in Frankfurt trading on Nov 9 following the company's announcement of an internal investigation into whether chief executive Jensen Huang had been targeted by a foreign intelligence effort. The probe was launched after media reports linked Huang to a Chinese businesswoman who allegedly passed information to Beijing. Huang disclosed to employees that he had been unfaithful to his wife, but did not provide further details.

The investigation, disclosed on Nov 8, has raised questions about Huang's future at the world’s most valuable chipmaker. The scrutiny also affected a planned trip to Seoul by Madison Huang, the executive and daughter of Jensen Huang, who cancelled her attendance at an Nvidia conference scheduled to begin on Nov 9.

At the time of the sell-off, Nvidia’s market value fell by roughly US$270 billion from its Nov 6 closing level, according to LSEG Datastream. Chris Weston, head of research at Pepperstone in Melbourne, said the market reaction reflects heightened uncertainty about data-centre build-out, but he does not expect Huang to be replaced.

The New York Times previously reported that Huang had a relationship with Alice Huang, a former executive of Singapore-based Megaspeed, which U.S. authorities have identified as a Chinese intelligence asset. Chinese Foreign Ministry spokesperson Guo Jiakun dismissed the allegations as groundless.

Shares of Nvidia’s Asian chip partners—TSMC, Samsung Electronics and SK Hynix—rose on the same day, with TSMC up 6.5%.

Investor Bill Ackman described Huang as an “incredible human” but warned that a serious breach could pose a risk to national security. Tesla CEO Elon Musk agreed with a comment that Huang’s actions were “bad for America” but added that he is irreplaceable for U.S. AI leadership. U.S. President Donald Trump said he had not spoken to Huang about the allegations, called him a fine person and expressed confidence in his performance.

Madison Huang’s planned meetings with South Korean AI start-up Rebellions and Kakao Mobility were cancelled due to “unavoidable internal circumstances at Nvidia.” The two-day Nvidia AI Day Seoul event will continue as scheduled.

Analysts noted that a prolonged review could delay Nvidia’s investment decisions or product launches, potentially benefiting rivals such as AMD. However, they also said Nvidia’s products are difficult to replace, limiting broader industry impact. South Korea’s deputy science minister said the government expects no disruption to contracted deliveries of Nvidia graphics processors.