Nvidia Has Lost $1.8 Trillion in Value as Huang Scandal Deepens

Nvidia has erased more than $1.8 trillion in market value since October 6, and internal messages reviewed by Reuters now show why the board's patience ran out: former CEO Jensen Huang misled the company's top lawyer about his relationship with a suspected Chinese intelligence operative.

In two messages sent in October 2026, Huang told Nvidia leaders — including General Counsel Tim Teter and Chief Marketing Officer Alison Wagonfeld — that his interactions with Alice Huang reflected standard business dealings with customers. Reuters reviewed the correspondence but did not quote it verbatim, citing an agreement with its sources. Huang had offered the same description in autumn 2025, though Reuters reviewed only the October 2026 exchanges.

Who is Alice Huang?

Alice Huang, also known as Huang Le, built a career in Shanghai finance before becoming controlling shareholder of Singapore-based Megaspeed International, an Nvidia cloud partner, in March 2023. She and Jensen Huang are not related.

Photos verified by Reuters show the two together in the U.S., China and Taiwan dating back to December 2023. When the relationship became intimate remains unknown.

How did the board respond?

The sequence moved fast. The New York Times reported on November 11 that U.S. intelligence officials believed Alice Huang was acting on behalf of Chinese intelligence. Nvidia's board launched an independent investigation on November 8, the same day Huang apologized for being unfaithful to his wife — without naming Alice Huang or disclosing details. Independent directors retained Wachtell, Lipton, Rosen & Katz on November 10; the probe is now led by partner Joon Kim, former acting U.S. Attorney for the Southern District of New York.

The board initially expressed confidence in Huang, then met on November 11 to decide whether to oust him. He resigned as president, CEO and board member effective November 12. Chief Financial Officer Colette Kress became interim CEO. Huang has hired Paul Weiss for personal representation.

The Times also reported on November 11 that Huang had a second extramarital affair, with Kimberly Powell, Nvidia's vice president of healthcare, who reported to him. Reuters could not independently verify that report.

What did investors lose?

A proposed class action filed November 9 in federal court in San Jose accuses Nvidia and Huang of defrauding shareholders by concealing his ties with a suspected Chinese spy. The suit landed five minutes after market close on a day Nvidia shares fell 4.3%, cutting market capitalization by roughly $190 billion — about $190,000 for every million of prior value, a hit larger than the total worth of most S&P 500 companies.

Shares dropped another 4.3% on November 12 after the resignation. From the October 6 peak, the stock is down more than 30%. Lawmakers from both parties have responded by calling for tighter restrictions on China's access to advanced AI chips, and Senate Banking Chair Tim Scott has requested Huang and Commerce Secretary Howard Lutnick testify next month.

What does Washington know?

The national security picture is incomplete, and officials say so. President Donald Trump said on November 9 that the FBI was looking into the matter and that Huang told him he had no idea the woman was a spy — roughly a month after Trump awarded him the National Medal of Science on October 8. The Times reported Trump was briefed on the relationship and chose not to act.

U.S. Attorney General Todd Blanche said on November 12 that the Justice Department had not yet reached a conclusion. A classified memo drafted under Secretary of State Marco Rubio in spring 2026 had warned senior officials about the relationship, the Times reported. China's Foreign Ministry called the allegations "groundless."

What remains unverified?

Reuters has not independently verified whether Alice Huang worked on behalf of the Chinese government. Huang told Bloomberg on October 29 that the U.S. government had not informed him of its suspicions. Nvidia has said its CEO meets thousands of customer executives annually and shares ordinary business information, not trade secrets or national security information. Whether anything sensitive was compromised remains unanswered.

Nvidia, Teter, Wagonfeld, and representatives for Huang and Alice Huang declined to comment or did not respond to Reuters. Until the Wachtell probe reports, the gap between what Huang told his lawyers in October 2026 and what investigators conclude will define both the lawsuit and his legacy.