Nvidia Shares Fall Over Investigation Into CEO Jensen Huang’s Alleged Links to Chinese Intelligence

New York: Shares of Nvidia fell more than 4% in after-hours trading on Monday following the launch of an internal investigation into allegations that Chief Executive Officer Jensen Huang may have been targeted by a foreign intelligence operation, raising questions about his leadership and the future of the world’s most valuable chipmaker.

The investigation, announced on Sunday, followed media reports alleging that Huang had a close relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, who was reportedly investigated by US authorities and identified as an alleged Chinese intelligence asset.

In a message to Nvidia employees, Jensen Huang acknowledged that he had been unfaithful to his wife but did not disclose further details about the relationship. The developments have intensified scrutiny of his position at the company, particularly given his central role in driving Nvidia’s global leadership in artificial intelligence (AI) technology.

According to trading data from the Hyperliquid exchange and the Blue Ocean trading system, Nvidia shares were trading at approximately $178.60, down more than 4% from Friday’s Nasdaq closing price of $186.64.

Chris Weston, Head of Research at Melbourne-based brokerage Pepperstone, said the controversy could negatively affect the company’s stock performance at a time when investors were already assessing uncertainties surrounding global data centre expansion.

However, Weston expressed doubts that Huang would be replaced, describing him as a pivotal figure in the global AI industry and suggesting that his departure would trigger a much more severe market reaction.

The controversy has also attracted attention from prominent business leaders and investors. Billionaire investor Bill Ackman, founder of Pershing Square Capital Management, described Huang as an extraordinary individual but stressed that any confirmed connection extending beyond a personal relationship into national security matters would represent a serious concern.

Tesla Chief Executive Elon Musk also commented on the controversy, agreeing with a social media post describing the situation as damaging while emphasizing that Huang remained indispensable to America’s AI leadership.

US President Donald Trump said on Sunday that he had not discussed the allegations with Huang but described the Nvidia chief as an honourable person who had performed exceptionally well. Trump also indicated that he believed Huang might have an explanation for the situation.

The New York Times previously reported that Trump had been briefed about the intelligence findings approximately a year ago but had decided not to take action.

Madison Huang Cancels South Korea Visit

The controversy has also affected Nvidia’s planned engagements in South Korea. Madison Huang, Jensen Huang’s daughter and an Nvidia executive, cancelled her scheduled visit to Seoul for a series of business meetings ahead of an Nvidia conference.

South Korean AI startup Rebellions confirmed that its planned events with Madison Huang had been cancelled due to unavoidable internal circumstances at Nvidia. She had also been scheduled to participate in a question-and-answer session with Kakao Mobility.

Meanwhile, Nvidia AI Day Seoul, a two-day conference expected to attract approximately 2,000 participants, will proceed as planned. The event will focus on physical AI, agentic AI and infrastructure development.

Asian Chipmakers Maintain Market Momentum

Despite the uncertainty surrounding Nvidia, shares of its major Asian semiconductor suppliers recovered on Monday following last week’s sell-off in AI-related stocks.

Taiwan Semiconductor Manufacturing Company (TSMC) shares surged 6.5%, while Samsung Electronics gained 2.9% and SK Hynix advanced 4.7%.

Market analysts warned that a prolonged investigation or internal review could potentially delay Nvidia’s investment decisions and product launches, creating wider implications for the global semiconductor industry.

Ryu Young-ho, a senior analyst at NH Investment & Securities, said competitors such as Advanced Micro Devices (AMD) could attract greater investor attention in the short term. He also suggested that Samsung could benefit from increased attention because of its close business ties with AMD.

Nevertheless, analysts noted that Nvidia’s products would be difficult to replace, limiting the potential long-term impact of the controversy. However, shipments to China could face additional delays depending on how the investigation develops.

South Korea’s Deputy Science Minister said on Monday that the government expected no disruption to previously contracted deliveries of Nvidia graphics processing units (GPUs), despite the challenges currently facing the company.

The investigation has placed Nvidia’s leadership under increased scrutiny at a critical moment for the global AI industry, with investors closely monitoring developments and their potential implications for the company’s operations, international partnerships and market position.