Nov. 10, 2026 — Nvidia shares extended their losses on Tuesday, putting the artificial intelligence chipmaker on track to lose more than $470 billion in market value over two trading sessions as investors grew increasingly concerned about allegations involving CEO Jensen Huang and a Chinese businesswoman accused of having ties to Beijing’s intelligence operations.
The controversy has intensified scrutiny of Nvidia’s corporate governance, compliance with U.S. export controls and dependence on Huang’s leadership.
According to a report by The Information on Tuesday, Huang’s relationship with Alice Huang, who is not related to him, helped facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese companies. The report cited two people familiar with her.
Nvidia shares fell more than 6% on Tuesday, following a 4.3% decline on Monday. The losses allowed Microsoft to overtake Nvidia as the world’s second-most valuable company for the first time since June 2025.
Allegations Raise Questions About Nvidia’s China Business
The latest report has added another dimension to concerns surrounding Nvidia’s relationship with Alice Huang, also known as Huang Le.
According to The Information, Alice Huang, her husband and her sister built a network of companies across China and Singapore to acquire Nvidia chips.
At the center of the reported network was Shanghai Century Litong, a China-based company that secured preferred cloud partner status with Nvidia in 2023, giving it priority access to the chipmaker’s products.
When orders for Nvidia processors subject to U.S. export restrictions stalled, Alice Huang allegedly used her connections with Nvidia and its distributors to obtain additional supplies.
The Information reported that the network helped move approximately 240,000 Nvidia H100, H200 and some A100 chips into China.
Shanghai Century Litong reportedly rented computing capacity and operated data centers using Nvidia processors, including some chips that were prohibited from being sold to China.
Some of the computing capacity and chips ultimately served major Chinese technology companies Alibaba and Tencent, as well as smaller artificial intelligence laboratories, according to the report.
Alice Huang also held an executive position at Singapore-registered Megaspeed, a company linked to Century Litong that has been investigated by U.S. authorities over Nvidia chip shipments from Southeast Asia to China.
The Information reported that Alice Huang used her relationship with Jensen Huang to strengthen her credibility while keeping her role unclear and avoiding a paper trail.
Nvidia and U.S. Authorities Investigate
Nvidia’s board launched an internal investigation on Sunday following earlier media reports about the relationship and possible foreign intelligence connections.
The FBI is also examining whether Jensen Huang, 63, was targeted by a foreign intelligence operation.
The allegations have raised concerns about whether Nvidia’s commercial relationships and internal controls could have been exposed to potential national security risks.
Huang previously told Nvidia employees that he had been unfaithful to his wife but did not provide details about the relationship.
Nvidia did not immediately respond to a request for comment on Tuesday.
Alibaba, Tencent, Megaspeed and Shanghai Century Litong were also not immediately available for comment outside regular business hours.
Microsoft Overtakes Nvidia in Market Value
The latest stock decline has placed additional pressure on Nvidia’s market position.
After falling more than 6% on Tuesday, following Monday’s 4.3% drop, the company was on track to lose more than $470 billion in market value over two sessions.
Microsoft overtook Nvidia as the world’s second-most valuable company, marking the first time it had done so since June 2025.
The sharp reaction reflects investor concerns that the allegations could extend beyond Huang’s personal conduct and affect Nvidia’s business relationships, regulatory exposure and future operations in China.
Bank of America analysts said investors were assessing whether the situation would remain specific to Nvidia or trigger broader restrictions and disruptions across the AI infrastructure industry.
“The investment debate is whether this remains company-specific or triggers restrictions and disruption across AI infrastructure,” the analysts wrote in a note.
They also cautioned against treating allegations as proof of actual damage to the company’s business.
Leadership Dependence Adds to Investor Concerns
The controversy has renewed attention on Nvidia’s reliance on Huang, who co-founded the company and has played a central role in building its position in the global AI market.
Huang’s leadership has been closely associated with the development of Nvidia’s CUDA software ecosystem, which underpins much of the company’s competitive advantage in AI computing.
He also maintains important relationships with major technology customers and governments, making his position particularly significant to the company’s commercial strategy.
Investors are now weighing the possibility that an extended investigation could create uncertainty around leadership, export-control compliance and Nvidia’s relationships with international customers.
The company has become one of the biggest beneficiaries of the global AI investment boom, supplying processors used in data centers and advanced computing systems.
However, the latest developments come as investors are already questioning whether the enormous spending on AI infrastructure will generate sufficient returns.
U.S.-China Technology Tensions Add Another Layer of Risk
The reported movement of restricted Nvidia chips into China could intensify scrutiny of the company’s export-control compliance.
Washington has imposed restrictions on advanced semiconductor exports to China as part of broader efforts to limit Beijing’s access to technologies considered strategically important.
Any evidence that restricted chips reached Chinese companies through indirect commercial networks could create additional regulatory and political pressure.
The reported involvement of companies operating across China and Singapore also highlights the complexity of monitoring semiconductor supply chains and enforcing export restrictions.
For Nvidia, the situation creates a potentially difficult combination of corporate governance concerns, geopolitical sensitivity and investor uncertainty.
Nvidia Faces a Critical Test
The latest selloff shows how quickly concerns involving a company’s leadership can affect investor confidence, particularly when that executive is closely associated with its technological success and commercial relationships.
Nvidia’s internal investigation and the FBI’s examination of whether Huang was targeted by foreign intelligence could have important implications for the company.
For now, the allegations remain under scrutiny and has not independently verified the reported chip network.
Investors will be watching for further information about the investigation, Nvidia’s export-control compliance and whether the controversy could affect its relationships with customers and governments.
With more than $470 billion in potential market value at stake over two sessions, the developments have become a major test of confidence in Nvidia’s leadership and its position at the center of the global AI industry.
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