NVIDIA Shares Fall 4.3% as Board Opens Independent Probe into Alleged Targeting of Huang

Key Facts

NVIDIA said Sunday that its board had begun an independent investigation into reports that CEO Jensen Huang was targeted in a foreign intelligence operation, as Huang acknowledged being unfaithful to his wife and apologized to his family and company employees. In a letter, Huang said: "I was unfaithful to my wife. My actions hurt my wife and our children." The announcement came amid reports linking the alleged relationship to security concerns, but the espionage allegations themselves remained under investigation. The board said it had no reason to believe that national security or NVIDIA secrets had been compromised. The company said Huang would remain CEO and had pledged to cooperate fully with the investigation.

Huang distinguished in his apology between his admission about his personal life and the security allegations surrounding the case, saying his actions had hurt his wife and children. The board did not announce a finding from the investigation, saying instead that it had begun an independent review of reports that he had been targeted in a foreign intelligence operation. The board kept Huang in his post while investigators worked, and he pledged to cooperate with them. The company, meanwhile, cited no evidence that its information or national security interests had been compromised. President Donald Trump said Huang told him he did not know the woman linked to him was a spy, adding that the Federal Bureau of Investigation was looking into the matter.

The announcement weighed on NVIDIA shares in Monday's November 9 session, when they fell more than 4%, according to the Associated Press, while EL7 data showed a close at $178.67, compared with $186.64 on November 6. The agency reported that the stock fell 4.3% during the session before rising 1.8% in premarket trading on Tuesday morning, November 10. The move followed a lower close in Monday's session, which coincided with the announcement of the investigation. According to the Associated Press, NVIDIA and other major AI companies' shares had been falling since early October as concerns about a sector bubble mounted. In the 30 days ended with Monday's close, NVIDIA shares lost 23%, after reaching a record high the previous month.

The case intersects with Huang's stake in the company, which a Form 4 filing with the U.S. Securities and Exchange Commission lists as indirect ownership through a trust. Huang reported 467,693,547 shares following a transaction dated September 17, 2026. The filing names the trust as the Jen-Hsun & Lori Huang Living Trust, linking the reported holding to Huang and his wife. The information available here does not provide a monetary valuation of the holding, so its confirmed market value cannot be derived from the share count alone. Monday's share decline followed a fall from the November 6 close, while Huang's executive status remained unchanged during the investigation, as announced by the company.

China's Foreign Ministry rejected the espionage allegations, describing them as "groundless and nothing but fabrications about China," according to the Associated Press. In Washington, House Democratic Minority Leader Hakeem Jeffries said lawmakers needed more information and called for a full briefing dedicated to the case. He said a classified briefing for congressional leaders with intelligence chiefs on Monday touched briefly on NVIDIA but focused mainly on Iran. The matter therefore remained before U.S. authorities as a request for more information, while the company's board continued its independent investigation. None of the cited sources announced an investigation finding or confirmed that company secrets or national security had been compromised.

Potential consequences extend to chip export policy, a point raised by Raymond James analysts, according to the Associated Press. They said the espionage reports could strengthen congressional support for legislation imposing additional restrictions on sales of semiconductors and chipmaking equipment to China. Jeffries called for passage of the annual defense bill, which includes restrictions on chip sales to China. The Senate version gives Congress additional authority over AI chips headed to China and urges U.S. allies to restrict sales of semiconductor manufacturing equipment to the country. It also requires companies to track AI chips overseas to combat smuggling. These legislative paths remain separate from the outcome of NVIDIA's board investigation, while Jeffries said Congress needed a full briefing on the case.