1 Year Ago, Jensen Huang Said, “China Is Going To Win The AI Race.” Now Nvidia’s Board Is Investigating His Relationship With An Alleged Chinese Intelligence Asset

Nvidia's stock dropped 4.3% Monday and 6% Tuesday after CEO Jensen Huang admitted to an affair and an independent investigation was announced. Despite Nvidia being a major holding in ETFs like VOO, QQQ, and SMH, these funds saw gains offsetting Nvidia's losses. Broadcom, a rival, rose 8.8% Monday and 3% Tuesday. The market's concentration did not lead to fragility, as gains in other stocks and sectors balanced out Nvidia's decline.

The S&P 500, Dow, and Nasdaq fell on Tuesday due to higher-than-expected inflation data. Nvidia dropped 5.5% amid CEO investigation news. Homebuilders like Lennar, DR Horton, and PulteGroup also declined. AI-related stocks saw mixed performance, with Anthropic filing for an IPO at a $1.3T valuation.

Microsoft (MSFT) briefly became the world's second-most valuable company, surpassing Nvidia (NVDA) after Nvidia's shares fell 6% due to CEO Jensen Huang's affair. Microsoft reported $92.3B revenue, up 19%, with Azure growing 48%. Nvidia faces a $470B market-value loss and leadership concerns.

Nvidia's shares fell over 6% on Tuesday, extending losses from Monday, as concerns grew over CEO Jensen Huang's alleged affair with a Chinese businesswoman, Alice Huang, who is accused of facilitating $7.5B in chip shipments to China. The company's market value dropped over $470B in two days, with a total loss of $1.8T since early October 2026. Nvidia's board launched an internal investigation, and the FBI is examining potential foreign intelligence involvement.

Nvidia shares fell over 6% on Tuesday, extending losses to a $470 billion market value drop in two days. The decline follows reports of CEO Jensen Huang's affair with Alice Huang, allegedly a Chinese spy, and concerns over Nvidia's compliance and governance. The company's board has launched an investigation, and the FBI is examining potential foreign intelligence involvement.

Joon Kim, a former US Attorney, is leading an internal probe into Nvidia CEO Jensen Huang's alleged ties to a Chinese espionage campaign following Huang's admission of an extramarital affair. Nvidia shares dropped 10%, reducing its market value by $500 billion. The company maintains no national security or trade secrets were compromised, but concerns persist.