Nvidia stock falls 4.4% as Jensen Huang faces board investigation
Nvidia (NASDAQ: NVDA) shares dropped 4.4% in premarket trading at 5:15 a.m. ET on Monday, according to Axios. The decline followed Friday’s Nasdaq closing price of $186.64. The move represented a potential loss of around $199 billion in market value.
BREAKING: Nvidia stock, $NVDA, falls over -5% in reaction to the Jensen Huang situation as premarket trading opens.The stock has now erased -$225 billion in market cap today. https://t.co/QMIkJjxDHI
— The Kobeissi Letter (@KobeissiLetter) November 9, 2026
The stock had already lost about 13% of its value since the first reports about Huang’s relationship with Alice Huang, a former executive at Singapore-based Megaspeed. The latest decline added another concern for investors who were already questioning the returns on massive AI infrastructure investments.
Nvidia had gained 2.8% on Friday, making it one of the biggest contributors to the S&P 500’s recovery. Monday’s premarket decline reversed much of that optimism.
Jensen Huang affair admission puts Nvidia CEO position under scrutiny
Huang admitted to being unfaithful to his wife in a message sent to Nvidia employees on November 8. He apologised to his family, colleagues and shareholders and accepted responsibility for his actions.
Nvidia CEO Jensen Huang admitted to having an extramarital affair with Alice Huang, a Chinese businesswoman suspected by U.S. intelligence agencies of being a Chinese intelligence operative.
He also said he would cooperate fully with the independent investigation announced by Nvidia’s board.
The inquiry will examine reports that Huang was targeted by a foreign intelligence operation. A committee of independent directors, supported by outside legal counsel, will oversee the investigation.
The board said it had no reason to believe that US national security or Nvidia’s confidential information had been compromised. It also expressed confidence in Huang and his leadership team.
Lori Huang is Nvidia CEO Jensen Huang’s wife and the president of their philanthropic foundation.
Huang remains CEO. However, analysts say the investigation could create uncertainty around the company’s leadership if further evidence emerges.
Nvidia and Megaspeed China spy allegations raise export control concerns
The investigation centres on reports involving Alice Huang, an unrelated former executive at Singapore-based Megaspeed. US intelligence officials reportedly believed she had gathered information for Beijing.
Megaspeed is an Nvidia customer that purchased advanced computing equipment for data centres. US authorities have also examined concerns about whether Nvidia-powered hardware was diverted to China in violation of export restrictions.
The allegations have not been established by Nvidia’s investigation. China’s Foreign Ministry rejected the espionage claims on Monday, describing them as smears against Beijing.
AMD stock could benefit as Nvidia faces leadership uncertainty
Advanced Micro Devices (NASDAQ: AMD) could attract greater investor attention if the controversy continues. Nvidia’s premarket decline was not matched by an equally sharp fall across the entire chip industry.
Analysts believe AMD could benefit in the short term if investors reconsider their exposure to Nvidia. However, replacing Nvidia’s products would not be easy. The company remains central to the global AI infrastructure market, and its processors power many of the systems used to train and operate AI models.
TSMC, Samsung and SK Hynix stocks rebound despite Nvidia sell-off
Nvidia’s Asian semiconductor suppliers moved in the opposite direction on Monday as technology shares recovered from last week’s losses.
Taiwan Semiconductor Manufacturing (NYSE: TSM) shares jumped 6.5%. Samsung Electronics gained 2.9%, while SK Hynix advanced 4.7%, according to Reuters.
The gains suggest that investors have not abandoned the broader AI chip trade. Instead, the latest selling pressure is concentrated on Nvidia and the uncertainty surrounding its chief executive.
Intel and Marvell Technology shares were among the chip stocks facing modest declines in early trading. Both were down around 1% in premarket trading, according to market reports.
Nvidia earnings on November 17 and Congress briefing on November 18
Two upcoming dates could determine how investors assess the situation.
Nvidia is scheduled to report its third-quarter fiscal 2027 results on November 17. Investors will look for updates on AI chip demand, data-centre spending and the company’s financial outlook.
On November 18, three Republican House committee chairs have requested a closed-door briefing with Huang about the allegations and Nvidia’s safeguards against foreign espionage.
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