Nvidia Stock Sinks and Board Launches Investigation as Jensen Huang Admits Affair With Alleged Chinese Spy

Nvidia CEO Jensen Huang publicly admitted to an extramarital affair, triggering a board investigation into whether he was the target of a foreign intelligence operation linked to Beijing. The woman at the center of the scandal is connected to Megaspeed, a firm that the Commerce Department had been investigating before that probe was reportedly suspended last year following an interaction between Nvidia and a top Commerce official. The Financial Times reported that the alleged spy had pitched AI chip deals to investors, deepening national security concerns around one of America's most strategically important companies.

Nvidia shares fell nearly 4%, closing at $188.70, a drop of 2.63% on the day, while the Nasdaq 100 rose 3.24% and the S&P 500 gained 2.33%. Analysts noted it was Nvidia's widest single-day underperformance against the broad index since the DeepSeek selloff. The stock has fallen roughly 18% over the prior two weeks, and its RSI dropped to its lowest level since 2019, even as rivals AMD and Broadcom posted significant gains on the session.

Congress summoned Huang to testify about his relationship with the alleged spy, and President Trump's close ties to the Nvidia CEO drew renewed scrutiny. Huang withdrew from scheduled appearances at an Anthropic CEO forum and an ElevenLabs conference, though he was still expected to attend Semafor's Silicon Valley and The World event. Prediction markets placed a 44% probability that Huang exits Nvidia before 2028, though the company stated he would remain CEO and some senior tech investors argued his importance to the company made him impossible to replace.

The scandal carries implications well beyond Nvidia's share price. Huang has been Silicon Valley's most prominent advocate for continued U.S. chip sales to China, and analysts said the affair undermines his standing to make that case in Washington, likely empowering export-control hawks and potentially pushing China to accelerate development of its own semiconductor industry. AMD's shares rose as the company was confirmed as a key partner in Google's expanded AI chip lineup, positioning it as a direct beneficiary if Nvidia's political influence wanes or buyers diversify away from its hardware. China's government denied any spy operation, calling the allegations a groundless smear.