On Monday, Nvidia and its CEO Jensen Huang faced a proposed class action lawsuit alleging they deceived shareholders by hiding Huang’s connections to a suspected Chinese spy.
A complaint lodged in federal court in San Jose, California, claims the defendants misled investors regarding Huang’s purported relationship with Alice Huang, a former executive at Singapore-based Megaspeed, who is not related to him. The suit also contends that they failed to reveal that this situation raised national security issues that could jeopardize Nvidia’s reputation and business outlook.
Last month, The New York Times reported on the alleged relationship and indicated that U.S. officials had determined Alice Huang to be a Chinese intelligence asset.
Nvidia has not yet issued a response to requests for comments. Jensen Huang informed Nvidia staff that he had been disloyal to his wife, but did not provide specifics about 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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Huang, who co-founded Nvidia, has overseen the Santa Clara, California-based firm as it emerged as the leading chipmaker globally, making him a notable figure in the artificial intelligence sector.
On Sunday, Nvidia announced it was investigating the issue. Following this news, its shares fell by 4.3 percent on Monday, causing Nvidia’s market capitalization to decrease by roughly $190 billion USD. The lawsuit was filed just five minutes after the closing of the U.S. stock market.
It is not unusual for shareholders to file lawsuits against companies following unexpected drops in stock prices. Nvidia shareholders, led by Mark Kistenmacher, are pursuing unspecified damages against the defendants.
Kistenmacher aims to represent anyone who purchased Nvidia shares between October 9, 2025, and November 8, 2026—this period covers the time when The New York Times first reported on Huang’s encounter with the alleged spy and when Nvidia announced its investigation into the CEO being targeted by foreign intelligence.
