Nvidia Loses About $190 Billion in Value as Shareholders Sue Over Chief Executive's Alleged Ties to a Suspected Chinese Spy

Nvidia shares fell 4.3% on Monday, erasing about $190 billion of the chipmaker's market value, after shareholders filed a class action against the company and its chief executive, Jensen Huang, the Israeli business daily Globes reported in Hebrew. The lawsuit claims that the company and Huang withheld material information from investors about his relationship with Alice Huang, an executive at the intermediary firm Megaspeed whom US authorities reportedly concluded was a Chinese intelligence asset. Globes reported that President Trump confirmed the Federal Bureau of Investigation (FBI) is examining aspects of the case. Trump also said he had asked Huang whether he knew the woman with whom he had an affair was suspected of spying, and that Huang told him he did not.

The suit was filed in federal court in San Jose, California, and covers buyers of Nvidia shares between October 9, 2025, and November 8, 2026, according to Rappler's account of the filing. It accuses Huang and a company spokesman of misleading statements about Nvidia's business relationship with Megaspeed. Deutsche Welle reported that the case adds to scrutiny over whether sensitive information at the company was compromised. Nvidia's board opened its own investigation over the weekend, Folha de S.Paulo reported. None of the allegations have been proven in court.

The export-control question may matter more to investors than the affair itself. The Financial Times reported that Alice Huang pitched AI chip deals to investors, citing access to Nvidia GPUs and a connection to Alibaba. Christian Lamarco, founder of the short seller Culper Research, told MarketWatch that Megaspeed is not the only company helping China obtain restricted chips. Culper profits if Nvidia shares fall, so its claims need independent confirmation.