Nvidia shares tumble off the back of boss's affair with 'Chinese spy' - with the tech giant standing to lose $270BILLION

Nvidia is on course to shed around $270billion in market value after its shares plunged amid claims CEO Jensen Huang had an affair with a Chinese spy. An internal probe by the company followed a media report that Huang had a close relationship with Chinese businesswoman Alice Huang who allegedly passed information to Beijing. Huang told Nvidia's employees that he had been unfaithful to his wife, without disclosing details of the relationship.The investigation, announced on Sunday, has put a spotlight on Huang's future given Nvidia's status as the world's most valuable chipmaker and the CEO's role as the most prolific salesman of the AI boom.The leather-jacketed Huang enjoys rock-star status worldwide, particularly in Asia, where he often mingles freely with fans, taking selfies and signing autographs for his devoted followers.The fallout from the probe extended to South Korea, where Madison Huang, Huang's daughter and an Nvidia executive, cancelled a planned visit to Seoul for an Nvidia conference that was set to begin on Monday, according to companies she had been scheduled to meet.Nvidia's shares tumbled more than 6 per cent in Frankfurt trading, extending last week's selloff and pushing the stock to fresh multi-month lows. At those levels, the chipmaker stood to lose about $270billion from its closing price on Friday, according to a Reuters report citing LSEG Datastream. Pictures posted to LinkedIn by the company NetThunder showed the Nvidia boss and Ms Huang together in a bar in Taipei in June 2024'The market's probably telling you now this does no favors to the stock whatsoever in a time when there's a lot of conjecture as to the build-out of data centers,' said Chris Weston, head of research at brokerage Pepperstone in Melbourne.But Mr Weston said he did not think Huang, whom he described as the 'godfather of AI', would be replaced.'If we genuinely thought he was going to step down... the stock would be down - it would be an absolute bloodbath, to be honest,' he said.The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, who US authorities investigated and concluded was a Chinese intelligence asset.'The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear,' Chinese Foreign Ministry spokesman Guo Jiakun told reporters in Beijing.Megaspeed did not respond immediately to a request for comment on Monday, a public holiday in Singapore.Alice Huang did not respond to the New York Times last month when it first reported her relationship with Huang.The pair were photographed together at a bar in Taipei in June 2024, where Huang was seen wearing his trademark black leather jacket and enjoying whiskey with other technology executives. Alice Huang sat beside him during the gathering, which followed a technology trade show. Photographs were subsequently shared on LinkedIn by technology company NetThunder.They were reportedly seen together again in May 2025, leaving a restaurant in Taipei after a dinner attended by artificial intelligence suppliers.Shares in Nvidia's key Asian chip suppliers TSMC, Samsung Electronics and SK Hynix rebounded on Monday after last week's selloff of AI-related stocks. TSMC shares jumped 6.5 per cent, while those in Samsung and SK Hynix climbed 2.9 per cent and 4.7 per cent, respectively.Some prominent figures weighed in on Huang's admission. Billionaire investor Bill Ackman, founder of Pershing Square Capital Management, said on X that the Nvidia CEO was an 'incredible human', but if 'indeed this is more than an affair, then it is obviously a real problem'.'I am hoping for a simple affair, not a risk to our national security,' he added.Tesla CEO Elon Musk commented, 'I agree,' on a post by Sequoia partner Shaun Maguire that said Huang 'did something incredibly dumb' that was 'bad for America' but that 'Jensen is irreplaceable for America's AI leadership'.US President Donald Trump said on Sunday he had not spoken to Huang about the allegations, but called him a fine person. 'I hope everything's fine. He's done such an incredible job,' he added.When asked if he believed he should have acted on intelligence when he was briefed about it, Mr Trump said: 'No, I don't think so. I think he's an honorable guy. I think he probably has an excuse for it. You have to hear it.'The New York Times reported that Mr Trump was briefed about the intelligence findings roughly a year ago and chose not to do anything with the information.The reported intelligence findings have now sparked demands for answers on Capitol Hill.Republican congressmen Brian Mast, John Moolenaar and Rick Crawford, who chair three powerful House committees, have asked Huang to attend a closed-door briefing on November 18. Jensen Huang and his wife Lori Huang are pictured at an award ceremony in April 2026 Jensen Huang attends a state dinner hosted by US President Donald Trump for Chinese President Xi Jinping The New York Times reported that Trump was briefed about the intelligence findings roughly a year ago and chose not to do anything with the information (Pictured: Trump and Huang) The lawmakers want to question him about his interactions with Alice Huang and the measures Nvidia has implemented to protect itself against foreign espionage.Madison Huang had initially planned to visit South Korean AI startup Rebellions and hold a question-and-answer session with Kakao Mobility. Rebellions said the events were cancelled due to 'unavoidable internal circumstances at Nvidia'.Nvidia AI Day Seoul, a two-day event expected to draw about 2,000 participants to discuss physical AI, agentic AI and infrastructure, will proceed as planned, according to South Korean media. Nvidia did not respond immediately to a request for comment.Analysts said a prolonged investigation or internal review could potentially delay Nvidia's investment decisions or product launches, with broader implications for the semiconductor industry.Ryu Young-ho, a senior analyst at NH Investment & Securities, said Nvidia's rivals, including Advanced Micro Devices (AMD), could attract greater attention in the short term, potentially putting Samsung, which has close business ties with AMD, in the spotlight.Still, he said Nvidia's products would be difficult to replace, limiting the potential impact, although shipments to China could face further delays depending on how the situation developed.South Korea's deputy science minister said on Monday the government expected no disruptions to contracted deliveries of Nvidia graphics processing units despite issues currently facing the company.