Nvidia's shares slide as chip giant probes CEO Jensen Huang over spy claims
Internal probe follows media report that Huang had relationship with Chinese woman who allegedly shared info
Nvidia shares tumbled on Monday after an internal investigation into whether CEO Jensen Huang had been targeted by a foreign intelligence effort put his future at the AI chipmaker under scrutiny.
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Huang → slide → scrutiny
The internal probe followed a media report that Huang had a close relationship with a Chinese businesswoman who allegedly passed information to Beijing.
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who → follow → Beijing
Huang told Nvidia's employees that he had been unfaithful to his wife, without disclosing details of the relationship.
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he → tell → relationship
The investigation, announced on Sunday, has put a spotlight on Huang's future given Nvidia's status as the world's most valuable chipmaker and the CEO's role as the most prolific salesman of the AI boom.
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investigation → announce → boom
The leather-jacketed Huang enjoys rock star status worldwide, particularly in Asia, where he often mingles freely with fans, taking selfies and signing autographs for his devoted followers.
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he → jacket → followers
He is Nvidia's fifth-largest shareholder with a roughly 3.6 per cent stake, according to LSEG data, and he keeps a tight grip on the company through an unusually flat structure in which dozens of executives report directly to him.
But unlike Meta Platforms or SpaceX, Nvidia has no dual-class shares that would give its co-founder majority voting control.
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that → accord → control
The fallout of the probe extended to South Korea, where Madison Huang, Huang's daughter and an Nvidia executive, cancelled a planned visit to Seoul for an Nvidia conference that was set to begin on Monday, according to companies she had been scheduled to meet.
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she → extend → companies
Nvidia's shares tumbled nearly five per cent in U.S. premarket trading, extending last week's sell-off and pushing the stock to fresh multi-month lows.
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shares → tumble → lows
At the current levels, the chipmaker would lose around $250 billion US in value from its last closing price.
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chipmaker → lose → price
"The market's probably telling you now this does no favours to the stock whatsoever in a time when there's a lot of conjecture as to the build-out of data centres," said Chris Weston, head of research at brokerage Pepperstone in Melbourne, Australia.
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Weston → tell → Melbourne
But Weston said he did not think Huang, whom he described as the "godfather of AI," would be replaced.
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he → say → AI
"If we genuinely thought he was going to step down … the stock would be down — it would be an absolute bloodbath, to be honest," he said.
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he → think → ?
Nvidia said its board has confidence in Huang.
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board → say → Huang
Some analysts said he has no natural successor within the company in case he decides to step down.
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he → say → case
The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, who U.S. authorities investigated and concluded was a Chinese intelligence asset.
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authorities → report → who
"The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear," Chinese Foreign Ministry spokesperson Guo Jiakun told reporters in Beijing.
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Jiakun → call → Beijing
A screengrab from CTI video footage obtained Monday shows a woman identified by Reuters as Alice Huang, after comparison with a photograph obtained separately, attending a dinner with Nvidia CEO Jensen Huang at a restaurant in Taipei, Taiwan, on May 22, 2025.
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woman → obtain → May
Megaspeed did not respond immediately to a request for comment on Monday, a public holiday in Singapore.
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Megaspeed → respond → Singapore
Alice Huang did not respond to the New York Times last month when it first reported her relationship with Huang, and Reuters could not determine her location to seek comment on Monday.
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Reuters → respond → Monday
Shares in Nvidia's key Asian chip suppliers rebounded on Monday after last week's selloff of AI-related stocks, with TSMC closing 4.7 per cent higher, while Samsung Electronics and SK Hynix ending up 0.6 per cent and 0.4 per cent, respectively.
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Electronics → rebound → stocks
Some prominent figures weighed in on Huang's admission.
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figures → weigh → admission
Billionaire investor Bill Ackman, founder of Pershing Square Capital Management, said on X the Nvidia CEO was an "incredible human," but if "indeed this is more than an affair, then it is obviously a real problem.
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it → say → affair
"
"I am hoping for a simple affair, not a risk to our national security," he said.
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he → hop → security
Tesla CEO Elon Musk commented, "I agree," on a post by Sequoia partner Shaun Maguire that said Huang "did something incredibly dumb" that was "bad for America" but that "Jensen is irreplaceable for America's AI leadership."
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Jensen → comment → leadership
U.S. President Donald Trump said on Sunday he had not spoken to Huang about the allegations, but called him a fine person.
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he → say → him
"I hope everything's fine.
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everything → hope → ?
He's done such an incredible job," he added.
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he → do → job
When asked if he believed he should have acted on intelligence when he was briefed about it, Trump said: "No, I don't think so.
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I → ask → it
I think he's an honourable guy.
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he → think → ?
I think he probably has an excuse for it.
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he → think → it
You have to hear it."
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You → have → it
The New York Times reported that Trump was briefed about the intelligence findings roughly a year ago and chose not to do anything with the information.
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Trump → report → information
Madison Huang had initially planned to visit South Korean AI startup Rebellions and hold a question-and-answer session with Kakao Mobility.
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Huang → plan → Mobility
Rebellions said the events were cancelled due to "unavoidable internal circumstances at Nvidia.
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events → say → Nvidia
Nvidia AI Day Seoul, a two-day event expected to draw about 2,000 participants to discuss physical AI, agentic AI and infrastructure, will proceed as planned, according to South Korean media.
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Seoul → expect → media
Nvidia did not respond immediately to a request for comment.
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Nvidia → respond → comment
Analysts said a prolonged investigation or internal review could potentially delay Nvidia's investment decisions or product launches, with broader implications for the semiconductor industry.
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investigation → say → industry
Ryu Young-ho, a senior analyst at NH Investment & Securities, said Nvidia's rivals, including Advanced Micro Devices, could attract greater attention in the short term, potentially putting Samsung, which has close business ties with AMD, in the spotlight.
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which → say → spotlight
Still, he said Nvidia's products would be difficult to replace, limiting the potential impact, although shipments to China could face further delays depending on how the situation developed.
South Korea's deputy science minister said on Monday the government expected no disruptions to contracted deliveries of Nvidia graphics processing units despite issues currently facing the company.
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government → say → company
The Aporia
