Nvidia’s board has opened an independent investigation into reports that founder and CEO Jensen Huang was targeted by a foreign intelligence operation, after Huang admitted to an extramarital affair in a company-wide email on Sunday. The board said a committee of independent directors, assisted by outside counsel, will oversee the review. It added that it has no reason to believe that either national security or NVIDIA secrets were compromised and expressed confidence in Huang and his leadership team.
In his memo, Huang wrote: 'I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did.' He added that he takes full responsibility, accepts criticism and is committed to protecting NVIDIA and supporting America’s national security. A spokesperson said Huang intends to continue leading Nvidia without interruption.
The controversy centers on Alice Huang, a Megaspeed executive with no relation to Jensen Huang. Megaspeed is a Singapore-based data-center company and Nvidia customer that has been accused of helping restricted Chinese firms obtain Nvidia AI chips. Nvidia has said Megaspeed was already investigated over export-control concerns and that chip-diversion worries were debunked last year.
Market moves tied to the reports were volatile. One update showed Nvidia shares up 2.78%, or $5.04, while a subsequent overnight quote put the stock at $176.11, down 5.64% from Friday’s $186.64 close. Market capitalization was marked at about $4.50 trillion, down from $4.82 trillion.
Political pressure is mounting. Three House Republican chairs requested a closed-door briefing on November 18, with a reply deadline of November 11. They want to address Huang’s interactions with the Megaspeed executive, Nvidia’s security protocols and Chinese access to sensitive U.S. technology. China’s Foreign Ministry called the spy claims entirely groundless and speculative. President Donald Trump said he had not spoken to Huang since the probe was announced and called him a fine person.
Nvidia reports third-quarter earnings on November 17. Consensus estimates stand at $2.47 EPS on revenue of $108.80 billion. The shares had already fallen 21.48% over the previous month before this scandal. Dan Ives called the situation a black eye moment for Jensen, while George Chen said a sudden Huang departure would not serve investors well.
