U.S. Investigation into Nvidia Case Pressures Shares After Fall of More Than 4%
Key Facts
The U.S. Department of Justice has opened an investigation into the case involving Megaspeed, while Nvidia is conducting an internal review, according to The Associated Press. The company’s shares fell more than 4% on Monday and continued to decline on Tuesday morning, the news agency said in a report published on 11 November 2026. The company’s market capitalization exceeded $4 trillion at the time the report was published, making the investigation a focus for investors in a company with significant weight in the AI chip market. The news agency did not attribute the share move to a single cause; the decline came as the case emerged and investigations widened. Nvidia’s board said there was “no reason for us to believe” that national security or the company’s secrets had been compromised.
The case began with an investigation by the U.S. Department of Commerce, after which the matter was referred to the Justice Department, according to The Associated Press. The department’s National Security Division is examining whether Megaspeed violated export-control laws, while investigators are scrutinizing Alice Huang. Nvidia’s board said CEO Jensen Huang would remain in his position while cooperating with the investigation. This means the formal scrutiny is focused on possible violations of export rules and the role of parties connected to the case, while the company’s internal review continues. The board has not announced any reason to believe that the company’s secrets or national security were compromised.
In Singapore, police said investigations related to Megaspeed were ongoing and that they could not comment further at this time. Police also denied that the government or Singaporean officials had conducted investigations into Alice Huang or her alleged ties to Jensen Huang or Chinese intelligence. They said the government “did not say that” and that “no such investigations were conducted” into Alice Huang. The denial sets limits on what has been attributed to Singaporean authorities in the case, while the separate investigation involving Megaspeed continues. Police provided no further details on the course of that investigation.
Singapore says it does not apply unilateral export controls imposed by foreign countries, but it does not tolerate companies using their ties to the country to circumvent or violate export restrictions. The police statement said Singapore “does not apply unilateral export controls imposed by foreign jurisdictions” and “does not accept companies deliberately using their association with Singapore to circumvent or violate other countries’ export controls.” The position comes amid the U.S. investigation into whether Megaspeed violated export-control laws. Beijing, meanwhile, said the Chinese espionage accusation “is not supported by evidence” and described it as “nothing but slander,” according to The Associated Press. These public positions contrast with the ongoing investigations in the United States and Singapore, whose outcomes have not been determined.
The case highlights the difficulty of separating the company’s institutional future from its CEO, according to a Harvard Business School professor quoted by The Associated Press. He said Nvidia’s board “is between two difficult choices, with hardly any good options,” adding: “Jensen is Nvidia.” The report said the company’s ties to Huang and the lack of a clear successor complicate any prospect of removing him, while the board said he would remain in his position as he cooperates with the investigation. By contrast, an analyst at Synovus Trust expressed confidence in the company’s ability to retain its position in the AI chip market, even if Huang moved to a lesser role after the company’s investigation concluded. He said he “remains confident that the company will continue to maintain its leadership in the AI chip market”; this is an analytical view, not an investigation finding or the company’s position.