Key facts
- Shareholders allege Nvidia and Huang did not disclose that the matter raised national security concerns threatening its reputation and business prospects.
- The complaint was filed in federal court in San Jose, California, five minutes after the US stock market closed on November 9.
- Shareholders led by retail investor Mark Kistenmacher are seeking unspecified damages from the defendants.
- Nvidia said on November 8 it was conducting an independent investigation into reports Huang was the target of a foreign intelligence effort.
- Jensen Huang told Nvidia employees he had been unfaithful to his wife without disclosing details of the alleged relationship.
- Trump said the FBI is investigating the affair and that Huang told him he had no idea the person was a spy.
Nvidia and its chief executive, Jensen Huang, were accused of defrauding shareholders in a lawsuit over a Chinese spying scandal involving the $4.3 trillion company. The complaint was filed in federal court in San Jose, California, five minutes after the US stock market closed on November 9, according to the Guardian.
The shareholders, led by retail investor Mark Kistenmacher, claim Nvidia and Huang misled investors by not disclosing that Huang's alleged affair with Alice Huang, a former executive of Singapore-based Megaspeed who is not related to him, raised national security concerns that threatened Nvidia's reputation and business prospects. They are seeking unspecified damages.
The New York Times reported on the alleged relationship in October 2026 and said US authorities had concluded Alice Huang was a Chinese intelligence asset. Nvidia did not immediately respond to a request for comment to Reuters. Jensen Huang told Nvidia employees he had been unfaithful to his wife without disclosing details of the alleged relationship.
Nvidia announced on November 8 that it was conducting an independent investigation into reports that Huang was the "target of a foreign intelligence effort". Shares ended Monday's session, November 9, down 4.3%, reducing Nvidia's market value by approximately $190 billion.
Donald Trump said on November 9 that the FBI is investigating Huang's affair but that he does not think the executive has a reason to worry. "I know the FBI is looking into it in terms of something else, and I think that he'll be in good shape," Trump said at a White House briefing. He said he had spoken to Huang, who told him he had "absolutely no idea that the person in question was a spy."
Huang said in an open letter posted on Nvidia's website: "I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting Nvidia and supporting America's national security."