On Monday, Nvidia and its CEO Jensen Huang faced a proposed class action lawsuit alleging that they deceived investors by hiding Huang’s connections to an alleged Chinese spy.
The lawsuit, submitted in federal court in San Jose, California, claims that the defendants misrepresented facts to shareholders about Huang’s purported affair with Alice Huang, a former executive of the Singapore-based Megaspeed, who is not related to him. Furthermore, it alleges that they failed to reveal that this situation raised national security issues that could jeopardize Nvidia’s standing and future business opportunities.
Last month, The New York Times reported on the purported affair and noted that U.S. officials had determined that Alice Huang was linked to Chinese intelligence.
Nvidia has not responded immediately to inquiries for comments. Jensen Huang reportedly informed Nvidia employees about his infidelity without providing specifics regarding the alleged affair.
U.S. tech giant Nvidia’s shares tumbled after CEO Jensen Huang admitted to an affair with a woman accused of spying for Beijing. Andrew Chang breaks down what we know so far and what the scandal means for the world’s most valuable AI chipmaker.
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As a co-founder of Nvidia, Huang has guided the company based in Santa Clara, California, to become the leading chipmaker globally, making him a key figure in the artificial intelligence surge.
On Sunday, Nvidia announced it would investigate the matter further. On Monday, its stock declined by 4.3 percent, which led to a reduction in Nvidia’s market value by around $190 billion USD. The lawsuit was filed just five minutes after the U.S. stock market closed.
It is typical for shareholders to initiate lawsuits against companies following unexpected declines in stock prices. The Nvidia shareholders, led by Mark Kistenmacher, are pursuing unspecified damages from the defendants. Kistenmacher aims to represent anyone who purchased Nvidia shares between October 9, 2025, and November 8, 2026 — the period when The New York Times first reported on Huang’s meeting with the alleged spy and when Nvidia announced it was investigating claims regarding its CEO being targeted by foreign intelligence.