Nvidia Shares Fall Over 5% as Huang Admits Affair Amid Spying Probe

By Amara Osei

Nvidia shares dropped more than 5% in premarket trading on Monday, falling to just above $177, less than 12 hours after CEO Jensen Huang confirmed an extramarital affair and the company's board opened an independent investigation into whether he was targeted by a foreign intelligence operation.

If the premarket decline holds, Nvidia will have lost more than 26% of its value in the past month alone, according to the source's figures. The sellout compounds a brutal stretch for AI-related stocks, which sank in the days after the 2026 U.S. midterm election results on fears that an incoming Democratic-led Congress would take a more cautious approach to AI data center buildouts. Voters have overwhelmingly shown distaste for massive server farms, the source notes.

What did Jensen Huang admit?

The scandal erupted after the New York Times and the Financial Times reported that Huang had been having an extramarital affair with Alice Huang, a senior leader at Megaspeed, a Singapore-based cloud company. U.S. intelligence services believe the woman was spying on behalf of China, the reports said. Fast Company reached out to Megaspeed for comment; it was not immediately clear whether Alice Huang still worked there.

When the reports first broke, Jensen Huang suggested he had only had normal business engagements with Alice Huang. The two had been photographed together at multiple business and social events.

Last night, he changed course. Huang sent an email to Nvidia employees confirming the affair, which Nvidia later published on its website.

"I owe my family and all of you an apology," the message began. "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."

Addressing staff directly, Huang wrote: "you deserve better from me. Leading NVIDIA is the privilege of my life. My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence."

What does the investigation cover?

Nvidia's board of directors has initiated an independent investigation into reports that Huang may have "been the target of a foreign intelligence effort." The probe will be led by "independent directors, assisted by outside independent counsel," the company said.

The board said it "prioritizes U.S. national and economic security, which is paramount to the interests of NVIDIA and its shareholders." It added that it has no reason to believe company secrets or national security were compromised. Nvidia says it still has "confidence in Jensen and his leadership team."

Huang pledged his cooperation: "I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting NVIDIA and supporting America's national security. I am proud and grateful to be an American."

The stakes run beyond personal reputation. Nvidia, which Huang cofounded in 1993, makes the world's most advanced chips and graphics cards — the backbone of the AI revolution. Its top technology has faced U.S. export restrictions to China for years over national security fears, as Washington worries the hardware would give Beijing economic and military edge. Industry insiders, Wall Street and security experts fear any Nvidia secrets Huang discussed with Alice Huang could have reached foreign intelligence services.

What have China and Washington said?

Chinese Foreign Ministry spokesperson Guo Jiakun, quoted by Reuters, dismissed the allegations: "The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear."

Secretary of State Marco Rubio declined to engage. "Yeah, I can't comment on any of that. I just can't comment because of the nature of it. And I also can't comment on an internal corporate matter that's going on with Nvidia," he told reporters.

President Trump said he had not spoken with Huang about the matter. "I just know he's a fine person, but you never know what is going on," Trump said, adding, "I hope everything's fine" and calling Huang "an honorable guy" who has "done an amazing job for our country."

Could Huang lose the CEO job?

Dan Ives, senior managing director at Yorkville Ives & Co, told CNBC the fallout will extend well beyond the stock chart. "This is a black eye moment for Jensen and will spark multiple congressional inquiries at a minimum and will create an overhang on the stock for a myriad of reasons," Ives said.

He sees a risk that Huang could be removed from the CEO position. "[T]his will add risk to the stock as he is so important to the Nvidia story and strategy globally," Ives said.

The scandal lands on an AI industry already contending with bubble worries and growing public unpopularity — and Nvidia likely won't be the only entity investigating the allegations.