Nvidia (NASDAQ: NVDA) shares fell more than 4% to $178.67 in Monday trading, diverging from a broad semiconductor rally after the chipmaker’s board announced an independent investigation into reports that a foreign intelligence effort targeted CEO Jensen Huang.
The New York Times reported in October that U.S. intelligence officials had concluded Alice Huang, a former executive at Singapore-based Nvidia customer Megaspeed, was a Chinese intelligence asset who allegedly supplied information to Beijing. The newspaper also reported that she had developed a close relationship with Jensen Huang. The two are not related.
In late October, Huang told Bloomberg News that his interactions with Alice Huang were related to Megaspeed and were “completely normal and not unusual.” The Times reported Monday that Huang had acknowledged being intimate with her to Nvidia’s board.
The board said Sunday that a committee of independent directors, with help from outside independent legal counsel, would oversee the inquiry. It said it had no reason to believe U.S. national security or Nvidia’s confidential information had been compromised, but would examine all available information.
The directors reaffirmed their confidence in Huang and his leadership team, while the company said he would continue serving as CEO without interruption.
Megaspeed had separately faced U.S. scrutiny over suspicions that the company helped divert restricted Nvidia AI chips to China. In a separate report published Monday, the Times said Nvidia general counsel Tim Teter contacted Commerce Department investigators in August 2025 about the Megaspeed case, saying senior official Jeff Kessler had authorized the outreach. Investigators declined a meeting, and Kessler subsequently instructed them to follow established procedures.
The Justice Department subsequently asked Commerce to pause its investigation, and the case was abruptly transferred to the Justice Department, which is conducting a criminal inquiry into Megaspeed. Some officials described the transfer as unusual and raised concerns that Kessler’s interactions with Nvidia could compromise the investigation. The reporting did not establish that Nvidia caused the transfer or improperly influenced the investigation. Nvidia said it routinely communicates with officials to provide information and seek guidance.
Nvidia Bucks Semiconductor Rally as Shares Extend Decline
Nvidia stock was the only declining component of the Philadelphia Semiconductor Index during Monday’s rally, which lifted the index about 7%. Advanced Micro Devices (NASDAQ: AMD) surged over 13%, while Broadcom (NASDAQ: AVGO) climbed nearly 9%.
The selloff extended Nvidia’s prolonged share-price decline. The stock fell roughly 23% over the past month and traded about 27% below its 52-week high of $243.37.
Shares touched an intraday low of $170.24 on Monday, their lowest level since late March. At market close, trading volume had exceeded 446 million shares, more than 3.27 times Nvidia’s 10-day average daily volume of approximately 136 million.
Huang Apologizes as Lawmakers Seek Briefing
In a Sunday message to employees, Jensen Huang acknowledged being unfaithful to his wife and apologized to his family, colleagues, and shareholders. He did not identify the person involved in the affair.
Huang also pledged to cooperate fully with the board’s investigation and reaffirmed his commitment to protecting Nvidia and supporting U.S. national security.
The allegations had also prompted scrutiny from U.S. lawmakers before the board announced its investigation. In a November 4 letter, three Republican House committee chairmen requested a closed-door briefing with Huang on November 18 concerning his interactions with Alice Huang and Nvidia’s safeguards against foreign espionage. They asked him to confirm the date or propose an alternative by November 11.
China, meanwhile, rejected the intelligence allegations on Monday. Foreign Ministry spokesperson Guo Jiakun described the spying claims as unsubstantiated and intended to smear China.
Bernstein Flags Leadership Uncertainty but Maintains Nvidia Rating
Bernstein maintained its Outperform rating and $400 price target on Nvidia on Monday, but raised concerns about the company’s dependence on Huang.
The brokerage noted that Huang plays a central role in setting Nvidia’s long-term strategy and has approximately 60 direct reports. It also questioned who would assume leadership if he became unable or unwilling to continue as CEO.
Bernstein said uncertainty surrounding Huang’s leadership could persist.
Nvidia’s board has not announced findings or a timetable for completing its investigation. The directors said they would share additional information when appropriate.
