NVIDIA Facing Securities Class Action Over Stock Drop Linked to Reported Jensen Huang Affair with Suspected Chinese Spy

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A proposed NVIDIA class action lawsuit alleges that the embattled computer chip maker and Jensen Huang misrepresented and/or failed to disclose that the now-former CEO had an affair with a suspected Chinese spy who worked for a Singapore-based cloud computing and AI infrastructure firm suspected of helping China sidestep export controls, and that the situation posed national security concerns and a significant risk to NVIDIA’s business.

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The 17-page securities lawsuit contends that NVIDIA, the second-most valuable company in the world, mischaracterized and/or downplayed the nature of its relationship with Megaspeed, a Singapore data center company under scrutiny for potential ties to China, and executive Huang Le, or Alice Huang, a suspected Chinese spy allegedly involved with helping Chinese entities evade U.S. export controls on NVIDIA’s advanced AI chips.

The complaint alleges that investors were harmed financially after Jensen Huang, who founded NVIDIA more than three decades ago, admitted to the affair, as the price of NVIDIA stock fell nearly $8 per share, or 4.27 percent, on November 9, 2026.

Jensen Huang resigned as NVIDIA CEO on November 12, a day after reports said that he had another extramarital affair with an NVIDIA employee who reported to him.

According to the class action lawsuit, the export market for NVIDIA’s advanced AI chips is tightly controlled due to potential national security concerns. The case claims that NVIDIA, Jensen Huang, and company representatives made repeated public statements beginning on October 9, 2025 that created the impression that the company’s business dealings with Megaspeed were ordinary and in compliance with federal export controls.  

The defendants’ public statements and representations were false and misleading, as during this time, Jensen Huang had an affair with Alice Huang, who  is unrelated to Jensen and was determined by U.S. intelligence to be a Chinese asset, posing serious national security concerns and a risk to NVIDIA’s reputation and business prospects, the case charges.

Per the complaint, on November 8, 2026,  The New York Times published an article stating that Jensen Huang had admitted to “being intimate” with a “business executive.” The case says that on the same day, NVIDIA’s board of directors issued a statement that it would conduct an independent investigation into reporting that Jensen Huang had been targeted by foreign intelligence.

“As a result of [NVIDIA and Jensen Huang’s] wrongful acts and omissions, and the precipitous decline in the market value of [NVIDIA’s] securities, Plaintiff and other Class members have suffered significant losses and damages,” the securities lawsuit argues.

The class action lawsuit characterizes as false and misleading a 2025 statement from NVIDIA’s compliance team, which apparently determined, after looking into Megaspeed, that the company was “wholly owned and operated by a company based and headquartered outside China, with no China shareholders.”

The case also calls false and misleading the claim that NVIDIA’s dealings with Megaspeed were “normal and not unusual,” in light of Jensen Huang’s apparent affair with a suspected Chinese spy.

The NVIDIA stock drop class action lawsuit looks to cover all individuals and entities, other than NVIDIA and Jensen Huang, who purchased or otherwise acquired the publicly traded securities of NVIDIA between October 9, 2025 and November 8, 2026, both dates inclusive.

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