Nvidia CEO Jensen Huang Faces Congressional Testimony Over Spy Allegations

Nvidia shares fell by more than 4 percent in overnight trading into Monday, November 9, as the company's market capitalization of $4.5 trillion faced pressure from a new controversy involving its chief executive.

Jensen Huang, who cofounded the chipmaker more than three decades ago, admitted on Sunday that he had been unfaithful to his wife. He acknowledged the relationship with Alice Huang, a Chinese businesswoman and former executive at Megaspeed International.

The company's board announced an independent investigation to determine if Huang was targeted by a foreign intelligence operation. The review is overseen by a committee of directors and external legal counsel. Nvidia stated it has no reason to believe US national security or confidential information has been compromised.

Reports from the New York Times first surfaced late last month, alleging that US intelligence officials believed Alice Huang had been recruited by Beijing. The goal was to gather information about Huang and potentially influence Nvidia's chip sales to China. The precise nature of the information obtained and whether sensitive material was passed to Beijing remain unclear.

Alice Huang, also known as Huang Le, served as a senior executive at Megaspeed. The Singapore-based data center company purchased approximately $4.8 billion in equipment from Nvidia, making it one of the firm's largest buyers. Megaspeed has been under investigation by US authorities since 2024 for helping China obtain advanced chips in violation of export restrictions.

In a staff memo on Sunday, Huang wrote, "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." He previously told Bloomberg News in late October that his interactions with Alice Huang were "completely normal and not unusual" and related to her company.

Washington is currently divided on how to handle the situation. Republican Congressmen John Moolenaar, Brian Mast, and Rick Crawford called on Huang to testify before Congress on November 18. They argued that the allegations raise serious questions about China's access to sensitive US technology.

Democratic Senator Elizabeth Warren demanded answers from Nvidia and called for stronger legislation to prevent advanced US technology from reaching China. President Donald Trump defended Huang, describing him as an "honourable guy" and saying he did not think he should have acted after receiving an intelligence briefing about the allegations.

China's Ministry of Foreign Affairs spokesperson Guo Jiakun called the spy narrative unsubstantiated on Monday, labeling it "nothing but smears against China." Meanwhile, Nvidia's Madison Huang, Jensen Huang's daughter and an employee at the firm, cancelled a planned visit to South Korea for an AI event.

The dispute occurs as the US and China compete for artificial intelligence supremacy. US private investment in AI reached $285.9 billion in 2025, compared with $12.4 billion in China, according to Stanford University's AI Index. Nvidia's top-of-the-line Blackwell GPU chips are banned for export to China, though President Trump indicated in December that the H200 chip could be sold to the country.

Chris Beauchamp, chief market analyst at IG Group, noted that the scandal deals a blow to the perception of Huang in the chip world. He added that if the matter turns into a broader congressional investigation, Nvidia shares are likely to come under further pressure.