Nvidia sheds $300bn as Huang’s affair with suspected spy is probed
Nvidia shares fell as much as 7.5% at the New York open, to a seven-month low of $172.75, wiping about $335bn from the world’s most valuable company after its board opened an independent investigation into reports that Jensen Huang was the target of a Chinese intelligence operation through a woman with whom he had an affair. “I was unfaithful to my wife,” Mr Huang wrote to staff. “There is no excuse for what I did.” China called the spy claim “slander”.
Alice Huang, also known as Huang Le, was an executive at the Singapore data-centre firm Megaspeed from March to November 2023 and, US officials reportedly believe, was recruited by China’s Ministry of State Security; her whereabouts are unknown, and Singapore is investigating Megaspeed, which Washington has suspected of smuggling Nvidia chips to China. The board said it “has no reason to believe that either national security or NVIDIA secrets were compromised” and “has confidence in Jensen”; Mr Huang, who owns about 3.6% of the company, said “I love our country and our company” and promised to “cooperate fully”. Donald Trump stood by him — “I think he’s an honorable guy. I think he probably has an excuse for it” — and said he expected him to stay as chief executive. Congress does not: House Republicans want a closed-door briefing on 18 November and Chris Coons said “Congress will investigate and get answers”. Beijing’s Guo Jiakun said: “The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear.” By late afternoon the shares had pared the fall to about 6%, roughly $280bn, while the Nasdaq rose 2%. Analysts call Mr Huang “not replaceable”; watch the 18 November briefing.