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 reacted to growing allegations surrounding CEO Jensen Huang and a Chinese businesswoman accused of having links to Beijing’s intelligence operations.
The controversy intensified after Nvidia’s independent directors appointed former acting U.S. Attorney Joon Kim and the law firm Wachtell, Lipton, Rosen & Katz to lead the company’s internal investigation.
The FBI is separately examining whether Huang, 63, was targeted by a foreign intelligence operation.
The developments have raised concerns about Nvidia’s corporate governance, export-control compliance and dependence on Huang’s leadership, adding to investor uncertainty over the company’s exposure to China and the sustainability of massive investments in artificial intelligence infrastructure.
Nvidia Shares Extend Losses as Investors React
Nvidia shares fell more than 6% on Tuesday, following a 4.3% decline on Monday.
The selloff briefly allowed Microsoft to overtake Nvidia as the world’s second-most valuable company, a position the software giant had not held since June 2025.
Investors are assessing whether the controversy will remain a company-specific issue or lead to broader restrictions affecting Nvidia’s business and the AI infrastructure industry.
Bank of America analysts cautioned against assuming that the allegations had already caused measurable business damage.
“The investment debate is whether this remains company-specific or triggers restrictions and disruption across AI infrastructure,” the analysts wrote in a note. “We would not equate allegations with proven business damage.”
Nvidia Appoints Independent Investigators
Nvidia’s board launched an internal investigation on Sunday following reports about Huang’s relationship with Alice Huang, also known as Huang Le. The two are not related.
On Tuesday, the company’s independent directors announced that they had retained Joon Kim and Wachtell, Lipton, Rosen & Katz to lead the investigation.
The FBI is conducting a separate examination into whether Jensen Huang was targeted by foreign intelligence.
Huang previously told Nvidia employees that he had been unfaithful to his wife but did not disclose further details about the relationship.
The investigations come as Nvidia faces increased scrutiny over its international business relationships and the movement of advanced semiconductor products into China.
Reports Link Chinese Businesswoman to $7.5 Billion in Chip Shipments
A report by The Information said Huang’s relationship with Alice Huang helped facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese companies.
According to the report, Alice Huang, her husband and her sister built a network of companies across China and Singapore to acquire Nvidia processors.
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 chips subject to U.S. export restrictions stalled, Alice Huang allegedly used her connections with Nvidia and its distributors to obtain supplies.
The Information reported that the network helped move approximately 240,000 H100, H200 and some A100 chips into China.
Century Litong reportedly rented computing capacity and operated data centers using Nvidia processors, including some that were prohibited from being sold to China.
Some of the chips ultimately served Alibaba, Tencent and smaller Chinese AI laboratories, according to the report.
Megaspeed and Singapore Connections Under Scrutiny
Alice Huang also held an executive position at Singapore-registered Megaspeed, which was linked to Shanghai Century Litong.
The company has been investigated by U.S. authorities over Nvidia chip shipments from Southeast Asia to China, according to The Information.
The publication also reported that Alice Huang used her relationship with Jensen Huang to strengthen her credibility while keeping her role unclear and avoiding a paper trail.
The developments have raised additional questions about how advanced AI processors moved through regional supply networks and whether existing export-control safeguards were sufficient.
Trump Says Huang Denied Knowing About Alleged Spy Links
President Donald Trump said on Monday that he had spoken with Huang and asked whether the Nvidia CEO knew that Alice Huang was allegedly a Chinese spy.
Trump said Huang told him he had “absolutely no idea” and that he believed the executive.
The president also said he had not known about the alleged connections when Huang accompanied him to China in May.
However, The New York Times reported on Tuesday that Secretary of State and national security adviser Marco Rubio had briefed Trump aboard Air Force One while the president was traveling to China.
According to the newspaper, Rubio shared U.S. intelligence indicating that Huang was involved with a woman believed to be a Chinese spy.
The briefing reportedly marked at least the second time in seven months that Trump had received information about the intelligence findings.
The conflicting accounts have added another political dimension to the controversy, raising questions about what information senior U.S. officials had received and when.
U.S. Commerce Department Delays Possible Megaspeed Blacklisting
The controversy has also drawn attention to the U.S. government’s review of companies potentially connected to restricted semiconductor shipments.
The Financial Times reported that the Commerce Department was delaying efforts to blacklist Megaspeed.
The department chairs the government panel responsible for overseeing the U.S. entity list, which identifies organizations considered to pose national security risks because of their alleged connections to China or other activities.
According to the Financial Times, the department had requested additional information about some companies under consideration.
It remained unclear whether Megaspeed was among those companies. However, the delay meant the company had not been added to the list at the time of the report.
The U.S. Commerce Department and Nvidia did not immediately respond.
Alibaba, Tencent, Megaspeed and Shanghai Century Litong were also unavailable for comment outside regular business hours.
Nvidia Faces Governance and Export-Control Challenges
The investigation comes at a sensitive time for Nvidia, whose processors have become essential to the global artificial intelligence industry.
The company has benefited enormously from demand for advanced chips used in data centers, AI training and other high-performance computing applications.
However, its reliance on Huang has become an additional concern for investors as allegations surrounding his relationship with Alice Huang develop.
The reported chip network also raises questions about the effectiveness of export controls designed to restrict China’s access to advanced U.S. semiconductor technology.
Any confirmed violations or additional regulatory action could affect Nvidia’s commercial relationships, international sales and future access to important markets.
Investors Await Investigation Findings
Nvidia now faces several overlapping challenges: a leadership controversy, scrutiny of its China-related business activities and growing questions about the financial returns from the global AI infrastructure boom.
The appointment of independent investigators signals that the company’s board is taking the allegations seriously, while the FBI’s separate examination adds to the national security implications.
For investors, the central question is whether the developments will remain limited to Huang and the reported business network or lead to broader regulatory consequences for Nvidia.
With the company facing a potential $470 billion loss in market value over two sessions, the findings of the investigations could become critical to restoring confidence in its leadership, governance and international business operations.
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