Nvidia investigates Jensen Huang: what happened and how it affects the company

Updated 10 November 2026 · GAITS Solutions

What happened

• The report: according to The New York Times, Jensen Huang had an extramarital relationship with a businesswoman linked to a Singapore technology company, whom US intelligence agencies suspect of working for China’s Ministry of State Security.
• Huang’s response: on 8 November 2026 he emailed all staff acknowledging the relationship, apologising to his family and saying he had fallen short of his responsibilities. He says he supports the investigation and will cooperate fully.
• The board’s response: the same day, the board announced an independent investigation led by a committee of independent directors with outside counsel. It says it currently has no reason to believe national security or Nvidia information has been compromised, and that it retains confidence in Huang and his team.
• China has denied the espionage account and called it unfounded.

Important: the investigation is at an early stage and there are no findings. Nobody has been formally charged with espionage in connection with this case.

The impact on the stock

• On Monday 9 November, Nvidia shares closed 4.27 % lower at $178.67, after falling close to 9 % during the session.
• On Tuesday 10 November they kept falling: around 6 %, according to CNBC.
• The drop adds to a correction that had already started: the stock was well below its all-time high of 6 October.
• The wider market held up better: the Nasdaq was not hit to the same extent, suggesting investors see it, for now, as an Nvidia problem rather than a sector problem.

What analysts say

• Wells Fargo cut its price target from $315 to $300 but kept its Overweight rating.
• Bank of America removed Nvidia from its list of top US investment ideas.
• Analyst Dan Ives puts the chance of Huang stepping down as CEO at around 15 % and expects the investigation to take 4 to 6 weeks. Other analysts believe the market is already pricing in a higher probability.

Almost all agree on one thing: Nvidia’s business (demand for AI chips) has not changed overnight. What has changed is the uncertainty about its leadership, and that is what is weighing on the stock.

Shareholder lawsuit

Also on 9 November, a shareholder class action was filed against Nvidia and Huang in federal court in San José, California. According to the law firm behind it, the company made false or misleading statements. These are allegations by the plaintiffs that a judge will have to assess. Lawsuits of this kind are common in the US after a sharp stock drop.

Why it matters so much

• Dependence on one person: Huang co-founded Nvidia in 1993 and is the face of the company for customers, investors and governments. When a company’s value is so tied to its founder, any doubt about him passes straight to the company. This is known as key-person risk.
• Chip geopolitics: Nvidia is at the centre of the technology rivalry between the US and China, with export controls on its most advanced chips. Any suspicion of foreign influence is scrutinised closely, including by US authorities.
• Timing: Nvidia reports quarterly results on 17 November, with the investigation still open. It will be the first big test in front of investors.

What any company can learn

1. People are the target. Intelligence services and cybercriminals do not always attack systems: they often try to win the trust of someone with access. It is the same logic we saw in the Binance hack. Social-engineering training is for everyone, management included.
2. Protect executives in particular. Their accounts, devices and email give access to the company’s most valuable assets: two-step verification, managed devices and a clear separation between personal and work use.
3. Reduce dependence on a single person. Documenting processes, sharing access and having a succession plan protects the company, whatever its size.
4. Have a crisis plan ready. Nvidia communicated with staff and investors on the same day. Knowing who speaks, what is said and when makes the difference.

If you want to review the security of your company’s access and information, ask us for a cybersecurity review.

Sources

Statement from Nvidia’s board of directors (8/11/2026), Jensen Huang’s email to staff as published by CNBC and Axios, and reporting by CNBC, CBS News, ABC News and Yahoo Finance from 8 to 10 November 2026. We will update this article when there is news from the investigation.