Nvidia loses $600bn as board weighs ousting CEO Jensen Huang

Nvidia’s market capitalization dropped by approximately $600 billion in the early hours of November 12, following reports that the company’s board of directors is deciding whether to remove founder Jensen Huang from his position. The valuation loss represents a 5.5% decrease in share price from the previous day and extends a decline that began after the New York Times reported on a close relationship between Huang and Alice Huang, an executive at Megaspeed.

Jensen Huang acknowledged the relationship in a letter to employees on Sunday, stating that he had been unfaithful to his wife and expressing deep regret for the hurt caused to his family. He described his interactions with Alice Huang as not unusual or unexpected for a business context, but the personal admission intensified scrutiny on the company’s leadership.

US intelligence officials concluded that Alice Huang, who has no familial relation to Jensen Huang, was a Chinese intelligence asset recruited by the Ministry of State Security. The intelligence behind this assessment remains classified, meaning the specific evidence and the agency conducting surveillance are not public. Nvidia has appointed outside counsel to review the relationship and stated it has no reason to believe national security secrets were compromised.

Alice Huang previously worked as a journalist for China’s state broadcaster and for HSBC and Citic Securities. In 2015, she joined investment management firm Hexi, where she met financier Kang Wei. The two later acquired Megaspeed, a Singapore-based subsidiary of a Chinese gaming company, in 2023. They positioned the firm to secure access to Nvidia’s high-demand artificial intelligence chips, which are essential for computing power and subject to US export restrictions.

The earliest known image of the two together is from an after-party at a tech trade show in Taipei in 2024. Reporters and analysts have questioned whether Alice Huang could have accessed sensitive information regarding US AI policy or Nvidia’s internal strategy during their relationship. Steve Tsang, director of the SOAS China Institute, noted that China has a long history of industrial espionage and that its interest has shifted from traditional engines to artificial intelligence technology.

President Donald Trump, who has a close relationship with Jensen Huang, appeared ambivalent about the espionage allegations. He stated on Monday that he was unaware of the relationship when he invited Huang to join a delegation to China in May. Trump described Huang as an honorable man who built a great American company and mentioned that the FBI was investigating a matter related to Huang. A classified memo drafted by Secretary of State Marco Rubio in the spring warned that the CEO was in a relationship with a Chinese spy.

Nvidia’s stock price had already fallen by $430 billion by the close of the previous trading day before the news of the board’s decision emerged. The company continues to operate while outside counsel reviews the details of the relationship. The board’s final decision on Huang’s status is expected to be a defining factor in the company's immediate financial stability.