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Nvidia Sued Over Alleged Spy Ties, $190bn Wiped OutTechnology
Nvidia and Jensen Huang face a shareholder lawsuit over alleged ties to a suspected Chinese spy, after $190 billion was wiped off the company’s value.
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Nvidia and its chief executive, Jensen Huang, have been sued by a shareholder who accuses them of misleading investors about Mr Huang’s alleged relationship with a woman US authorities concluded was a suspected Chinese intelligence asset. The proposed class action was filed on Monday in federal court in San Jose, California.
According to the complaint, the defendants misled shareholders about Mr Huang’s alleged affair with Alice Huang, a former executive of Megaspeed, a Singapore-based Nvidia customer. Alice Huang is not related to Mr Huang. The New York Times reported last month about the alleged relationship, and that US authorities had concluded Alice Huang was a Chinese intelligence asset. Mr Huang has acknowledged that he had an intimate relationship with her.
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The lawsuit, brought by shareholder Mark Kistenmacher and the Rosen Law Firm, says Nvidia and Mr Huang failed to disclose that the matter raised national security concerns that threatened the company’s reputation and business prospects. It seeks to represent investors who bought Nvidia shares between 9 October 2025 and 8 November 2026, and seeks unspecified damages for alleged violations of US securities law.
Nvidia’s board announced an independent investigation into the matter on Sunday. The board said Mr Huang had been the target of a foreign intelligence effort, but that it had no reason to believe national security or company secrets had been compromised.
Investors reacted sharply. Nvidia shares closed down 4.3 percent on Monday at 178.67 dollars, wiping about 190 billion dollars off the company’s market value in a single day. The lawsuit was filed five minutes after the US stock market closed, according to Reuters.
US President Donald Trump said on Monday that the FBI was investigating the matter, while expressing support for Mr Huang. China denied conducting an intelligence operation targeting the Nvidia chief, with its foreign ministry describing the allegation as unsubstantiated.
The complaint focuses on four public statements by Nvidia about its dealings with Megaspeed and Mr Huang’s interactions with Alice Huang. US authorities have also been investigating allegations that Megaspeed routed Nvidia’s advanced artificial intelligence chips to China through intermediaries, in possible breach of US export controls. Megaspeed was already under scrutiny over suspected export control evasion before the reports about Mr Huang emerged.
The allegations in the complaint have not been tested in court, and Alice Huang has not been charged with any offence. It is common for shareholders to sue companies after unexpected share price declines, and Nvidia’s is only the latest in a series of securities cases that follow sharp falls in a company’s stock. The case, if certified as a class action, could run for years and will turn on whether Nvidia’s public statements about its relationship with Megaspeed were materially misleading at the time they were made.
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