Nvidia Shares Fall $200 Billion as Board Probes CEO Jensen Huang

Nvidia stock dropped approximately 4% on Monday following the disclosure that its board of directors opened an investigation into CEO Jensen Huang. The probe centers on Huang's relationship with Alice Huang, a Chinese businesswoman whom U.S. intelligence agencies have identified as a spy. The decline erased more than $200 billion in market value for the chipmaker.

The company stated on Sunday that a committee of independent directors, supported by outside independent counsel, will lead the inquiry. Nvidia asserted that the board prioritizes U.S. national and economic security. The statement noted that the board has no reason to believe national security or company secrets were compromised, though it provided no timeline for the investigation or details regarding the extent of contact between the two Huangs.

Jensen Huang, who founded the company in 1993, admitted in an internal note that he was unfaithful to his wife. He wrote to employees, the board, and shareholders that they deserved better from him. A spokesperson for the company told NBC News that Huang is committed to continuing as CEO without interruption. Alice Huang is not related to the CEO and allegedly works for a firm named Megaspeed, which did not return requests for comment.

The scandal strikes during a volatile period for technology stocks. Shares had surged after Election Day results indicated Democratic majorities in Congress, then plunged the following day. Thursday marked the worst one-day drop for the sector since April 2025. On Monday, however, the Nvidia news had limited impact on other major indices. The Nasdaq 100 rose 3%, the S&P 500 climbed 2%, and the Dow Jones Industrial Average gained nearly 900 points. Oil prices fell 5% on news that U.S. and Iran talks were continuing.

President Donald Trump voiced support for Huang on Sunday, calling him a fine person. When asked if Huang should remain CEO, the president replied affirmatively. China rejected the espionage allegations as smears. Huang holds approximately 3.5% of Nvidia shares outstanding, making him the largest individual shareholder outside of investment funds. Because Nvidia has a single class of shares, he lacks the structural protections present at firms with dual-class structures.

Analysts view the event as a rare setback for a company that has driven the artificial intelligence boom. Dan Ives of Yorkville Ives described the episode as a black eye moment that will likely spark congressional inquiries. He warned that the situation creates an overhang on the stock and poses a risk of Huang's removal. Stacy Ragson of Bernstein Research emphasized that Nvidia is not an ordinary company and that Huang is central to its identity.