NVIDIA Shares Fall 5% at Open as Independent Probe Into Huang Begins
Key Facts
NVIDIA shares fell about 5% at the market open on Monday, November 9, 2026, after the company’s board announced an independent investigation into reports that CEO Jensen Huang had been targeted by a foreign intelligence effort. In a statement issued on November 8, the board said it had begun the review, which will be handled by independent directors with the assistance of independent outside legal counsel. The investigation puts the company’s dealings with Singaporean data center company Megaspeed under scrutiny amid U.S. restrictions on exports of advanced chips to China. The board said it would examine all available information, while affirming that it had no reason to believe national security or company secrets had been compromised. It said Huang supports the review and has committed to cooperating with it, and that the board has confidence in him and his leadership team.
NVIDIA spokesman John Rizzo said Huang would continue to lead the company as CEO without interruption during the investigation. The assurance comes as a committee of independent directors oversees the review, while the board has announced neither its findings nor a timeline for completing it. In a message to employees, Huang acknowledged that he had betrayed his wife and apologized to his family and colleagues, saying he takes responsibility for his actions. His message included a personal apology, while the board’s investigation is focused on reports of a foreign intelligence effort and the company’s dealings. The board said the review would cover all available information.
The background to the investigation involves Megaspeed, which has become one of NVIDIA’s largest customers in Southeast Asia, according to the Associated Press. The agency cited The New York Times as reporting that the Singaporean company bought more than $4.8 billion worth of NVIDIA chips over the previous two years. Those dealings are sensitive amid U.S. export restrictions focused on NVIDIA’s advanced processors, aimed at limiting China’s access to the latest semiconductor technology. The Associated Press said chip sales to China had at times been targeted by U.S. regulators. It also reported that NVIDIA said in an August regulatory filing that it had sold only a small amount to China because of Chinese restrictions on those sales.
Chinese Foreign Ministry spokesman Guo Jiakun denied the espionage allegations, calling them “unsubstantiated” and “nothing but a smear against China.” The Chinese response comes as NVIDIA’s board review remains at an early stage, and the board has not said that the information it is examining proves a breach occurred. Dan Ives said the likelihood of Huang being ousted or stepping down as CEO was low, but noted that the investigation could keep pressure on the stock in the near term. Huang owns about 3.6% of NVIDIA shares, making him its fifth-largest shareholder, according to LSEG data cited by Reuters. Reuters also reported that dozens of executives report directly to him and that the company has no dual-class shares giving him a voting majority.
Before Monday’s session opened, NVIDIA shares and perpetual contracts traded near $180.30, down about 3.4% from Friday, November 6, Nasdaq close of $186.64. A Reuters report estimated that a continued premarket decline at those levels could erase about $250 billion in market value compared with the last close. Chris Weston, head of research at Pepperstone, said the news “doesn’t help the stock at all” at a time when there is considerable speculation about data center expansion. In Asia, shares of NVIDIA’s major suppliers rose on Monday, with TSMC up 4.7%, Samsung Electronics up 0.6% and SK Hynix up 0.4%, following losses in AI stocks the previous week. Reuters quoted analyst Daniela Hathorn as saying that Huang’s central role in the company’s success and the AI investment narrative make even speculation about leadership uncertainty a source of concern for investors.
The company’s financial results provide context for investors’ sensitivity to any development affecting its leadership or business in China. NVIDIA reported revenue of $96.2 billion in the second quarter of its fiscal 2027, ended July 26, 2026, up 106% year over year and 18% from the previous quarter. In that announcement, the company said it had assumed no data center computing revenue from China in its third-quarter outlook. The investigation leaves questions about chip dealings and their disclosure within the scope of scrutiny, while the board has announced neither a result nor a date for completing the review. Among upcoming dates, the company will hold a conference on November 17 to discuss results for the third quarter of fiscal 2027, which ended on October 25, 2026.