Nvidia (NASDAQ: NVDA) shares fell more than 5% to $168.89 on Tuesday as The Information reported that a business network linked to Alice Huang, a woman who reportedly had an affair with CEO Jensen Huang, helped supply at least $7.5 billion worth of Nvidia chips to Chinese companies since 2023.
According to the report, Alice Huang, a businesswoman suspected of ties to Chinese intelligence, worked with her husband and sister through companies in China and Singapore to obtain advanced Nvidia processors. The network reportedly moved approximately 240,000 H100, H200, and A100 chips into China, including models restricted under U.S. export controls.
Reuters said it could not independently verify the allegations.
At the quoted price of $168.89, Nvidia shares had fallen about 9.5% over the week’s first two trading days, including a 4.27% decline on Monday, when the Philadelphia Semiconductor Index gained 6.9%. The stock remained about 2.8% above its 52-week low of $164.27.
Report Details Alleged Chip Supply Network Across China and Singapore
Shanghai Century Litong emerged as a central player in the alleged network, according to The Information. It received Nvidia preferred cloud-partner credentials in October 2023, four months after its founding, giving it priority access to chip supplies. The report traced the ultimate control of a founding shareholder to Alice Huang’s sister, Huang Yu, before the shareholder exited in 2024.
Alice Huang reportedly cited her personal connection to Jensen Huang to bolster her credibility with colleagues and customers. She was also said to have intervened in stalled orders for restricted chips, claiming she could draw on contacts at Nvidia and its distributors to obtain supplies.
The network also involved Singapore-based Megaspeed, where Alice Huang previously held an executive position. Megaspeed reportedly served Chinese customers in two ways: by physically shipping Nvidia hardware into China and by renting out computing capacity from data centers in Southeast Asia.
Century Litong received Nvidia hardware that Speedmatrix, Megaspeed’s Malaysian subsidiary, had purchased, according to The Information. Century Litong also sourced chips through other channels. A portion of the Nvidia processors it acquired ultimately reached data centers serving Alibaba, Tencent, and smaller Chinese AI companies.
The Information reported that the chip trade had largely ground to a halt after U.S. and Singaporean authorities launched separate investigations into Megaspeed.
The New York Times reported earlier in the week that the U.S. Commerce Department paused its inquiry into Megaspeed at the Justice Department’s request and that the Justice Department was conducting a criminal investigation. In a December 2025 statement, Megaspeed denied wrongdoing and said inspections by U.S. and Malaysian authorities and Nvidia had found no evidence of illegal chip transfers.
Century Litong denied having business dealings with Alice Huang and said it obtained its Nvidia partner credentials through legitimate channels.
Nvidia told The Information that it primarily sells data-center processors through established partners and expects them to comply with U.S. export-control rules. The company also said its due-diligence efforts had helped identify suspected attempts to circumvent those restrictions.
Nvidia Names Independent Investigators Amid Foreign Intelligence Allegations
Nvidia’s independent directors announced Tuesday that they had retained former acting U.S. Attorney Joon H. Kim and his law firm, Wachtell, Lipton, Rosen & Katz, to conduct an independent investigation.
The appointment followed the board’s November 8 announcement that it was investigating reports of a foreign intelligence operation targeting CEO Jensen Huang. The inquiry began two days before The Information published its detailed allegations about chip shipments to China.
At the time, the board said it had no reason to believe U.S. national security or company secrets had been compromised. It also expressed confidence in Huang’s leadership.
In a message to employees, Jensen Huang acknowledged being unfaithful to his wife and apologized to his family, colleagues, and shareholders. He did not identify the woman involved and said he would cooperate with the board’s investigation.
The FBI was separately examining whether Huang had been targeted by a foreign intelligence operation, according to Reuters.
Nvidia and Huang also faced a proposed shareholder class-action lawsuit filed Monday in California federal court. The complaint, brought by investor Mark Kistenmacher, alleged that they misled investors by failing to disclose Huang’s relationship with Alice Huang and its potential national-security implications. The lawsuit seeks unspecified damages, and the allegations have not been established in court.
In Washington, Senate Democratic Leader Chuck Schumer urged Congress on Tuesday to pass bipartisan legislation restricting China’s access to advanced American technology in response to the Nvidia-related allegations. He cited the AI OVERWATCH Act, the MATCH Act, and the Chip Security Act, and called for intelligence committee briefings on China’s reported espionage efforts targeting Nvidia and other U.S. AI companies.
