Nvidia Shares Fall More Than 4% as Probe Opens Into Huang’s Alleged China Ties

Key Facts

Nvidia shares fell more than 4% on Monday, November 9, after U.S. President Donald Trump said the FBI was looking into the question of CEO Jensen Huang’s ties to a businesswoman accused of spying for China. Trump said he had spoken with Huang, who told him he did not know the woman was a spy. Trump added that he did not believe Huang had anything to worry about. The president’s comments put the case at the forefront of debate over U.S. information and technology security, while authorities have not announced the outcome of the investigation. The company’s shares closed at $178.67, according to EL7 data.

Nvidia’s board announced on Sunday that it had opened an independent investigation into reports that Huang had been the target of a foreign intelligence effort. The board said it saw no reason to believe the company’s secrets or national security had been compromised, but would examine all available information. Huang said he supported the investigation and would cooperate fully. In a letter, he wrote: "I love our country and our company, and I am committed to protecting Nvidia and supporting U.S. national security." The internal investigation leaves the question of any link between the alleged incident and company information under review.

The case prompted action in Congress, with three Republican committee chairmen asking Huang for a closed-door briefing on November 18 about the reports and Nvidia’s security protocols for countering foreign espionage. They asked him to confirm the date or propose an alternative by November 11. The committee chairmen said the reports raised significant concerns about China’s access to sensitive U.S. technology and information. Prominent Democrats also expressed interest in the investigation, and Representative Hakeem Jeffries called for a full briefing on what happened and its national security implications. Scrutiny has thus expanded from the company’s board to committees in both parties in Congress.

China’s Foreign Ministry denied the accusation, with spokesman Guo Jiakun describing the espionage allegations as "unsubstantiated and nothing more than smears against China." Huang, meanwhile, acknowledged an intimate relationship with a businesswoman and apologized to his wife and the company in an open letter published on Nvidia’s website, without naming her. Trump’s account of his conversation with Huang, China’s denial and the company’s statements about its independent investigation remain the parties’ publicly stated positions. The board has not yet issued a finding from its investigation, saying its review will cover the available information. Lawmakers’ stated concerns center on the possibility that China could gain access to sensitive U.S. information or technology.

The case coincides with a U.S. legislative debate over exports of chips and chipmaking equipment to China. Reuters reported that three chip-related measures are candidates for inclusion in the fiscal year 2027 defense authorization bill, which began in October. The measures cover congressional oversight of chip exports, tracking to combat smuggling, and pressure on allies to restrict sales of chipmaking equipment to China. The House Foreign Affairs Committee had approved all three bills earlier in the year, and they became part of the Senate’s defense authorization bill package. Senators Elizabeth Warren and Jim Banks called for passage of the AI Overwatch Act, saying Huang’s confirmation of his relationship with a woman under suspicion made security concerns more urgent.

Against this backdrop, Nvidia said in a regulatory filing in August that it had sold only a small quantity of H200 chips to China, where Chinese government restrictions had limited those sales. Reuters reported that the company is the biggest opponent of the AI Overwatch and Chip Security acts, according to a former congressional staffer who dealt with Nvidia. An official at an organization supporting the measures said the obstacle to their passage was securing White House support. The official also warned that backing Nvidia in its fight with Congress could be politically costly. The report did not specify whether the case would change the company’s position or the legislation’s trajectory.

In trading, Nvidia shares fell 23% in the 30 days before the AP report, in a sell-off the news agency said had been linked to fears of a sector bubble since early October. In Monday’s session, the stock fell more than 4%, while shares of other companies tied to artificial intelligence, including AMD and CoreWeave, rose. The report did not directly link those gains to the case. An analyst said the likelihood of Huang being fired or stepping down was low, but noted that the outcome of the board’s investigation could keep pressure on the stock in the near term. The investigation and political scrutiny make the case relevant to the company’s investors and the broader debate over chip export controls.

Upcoming developments include Huang’s requested briefing before House committees on November 18, with a response confirming the date or proposing an alternative due by November 11. Trump said he might meet Chinese President Xi Jinping the following week in Shenzhen during the Asia-Pacific Economic Cooperation summit, but had not decided whether to raise the case with him. On the economic data front, the National Bureau of Statistics of China’s schedule sets November 16 for the release of its monthly national economic performance report. The public schedule did not identify specific indicators to be included in the report. The internal investigation’s findings and legislative developments will remain among the issues to watch after a session in which Nvidia shares fell.