Nvidia falls 4.5% premarket as the Huang spy probe raises the question of who could succeed him

Nvidia (NVDA) stock fell 4.5% in premarket trading on Monday, after its board opened an investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort.

A committee of independent directors will run the probe with outside counsel. The board says it has no reason to believe national security or company secrets were compromised, but it will examine all available information. Huang remains CEO while it runs.

In a memo to staff on Sunday, Huang admitted to an affair. "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did," he wrote. He said he supports the investigation and will cooperate fully.

The probe follows weeks of reports. On October 29, The New York Times reported that U.S. intelligence had found Alice Huang, an executive at Singapore-based Megaspeed, was passing information to Beijing and had "developed a close relationship" with the Nvidia CEO.

Megaspeed has been accused of smuggling Nvidia chips into China. Huang had called his contacts with the company normal.

A U.S. memo from last spring said China's Ministry of State Security had recruited her, the Times later reported. China's foreign ministry called the spy claims "nothing but smears against China" on Monday.

Pressure in Washington is building on both sides. Three House Republican committee chairs have asked Huang to attend a closed-door briefing on November 18. Democratic Sen. Chris Coons wrote that "Congress will investigate and get answers."

President Donald Trump backed the CEO on Sunday. "I think he's an honorable guy," Trump told reporters, adding that he had not talked to Huang about the probe.

For investors, the open question is whether Huang keeps his job. "There is clearly risk that Jensen could be removed as CEO depending on the Board investigation," Dan Ives of Yorkville Ives & Co. wrote in a note.

Nvidia has no public succession plan and no clear heir, and Huang has said he wants to lead the company for decades. Nvidia told CNBC that Huang "is committed to continuing to lead NVIDIA as CEO without interruption."

So far the selling is limited to Nvidia. S&P 500 futures were up 0.4% and Nasdaq 100 futures up 0.2% as of 5:11 a.m. ET. Intel (INTC), Marvell (MRVL) and Arm (ARM) were each down about 1% before the open.

Joachim Klement of Panmure Liberum said the damage could spread if Huang's position is "endangered," since Nvidia might then pull back its support for other chip companies.

Nvidia reports third-quarter results on Monday, November 17, the day before the House briefing.

Sources & Further Reading

1. "Statement From NVIDIA Board of Directors." NVIDIA. November 8, 2026.
2. "Nvidia Board to Probe Spying Case After CEO Admits Affair." Bloomberg. November 8, 2026.
3. "Nvidia Chief, Jensen Huang, Is Seen as Target of Chinese Spy Plot." The New York Times. October 29, 2026.
4. "Nvidia CEO Jensen Huang faces bipartisan congressional scrutiny over reported China spy link." CNBC. November 8, 2026.
5. "China dismisses a spy plot claim involving Nvidia CEO Jensen Huang as smear campaign." Associated Press. November 9, 2026.
6. "Nvidia's Huang is asked to brief Congress on reported Chinese spy relationship." CNBC. November 5, 2026.
7. "Nvidia stock falls 5% as scrutiny turns to Jensen Huang's relationship with alleged Chinese spy." CNBC. November 9, 2026.