NVIDIA (NASDAQ: NVDA) is facing one of the biggest controversies in its history after CEO and co-founder Jensen Huang became embroiled in an affair with an alleged Chinese spy. While the stock recovered a bit on Wednesday, a further affair with an NVIDIA executive was revealed after the markets closed for trading. In the overnight session, shares of NVDA are down by nearly 8.0%.
The controversy centres on Huang’s reported romantic relationship with Alice Huang, a Chinese businesswoman and former executive at Singapore-based AI infrastructure company Megaspeed. US authorities reportedly suspect that Alice Huang was connected to Chinese intelligence, although the allegations have not been independently verified. Jensen Huang has acknowledged being unfaithful to his wife but has denied any knowledge of an espionage operation.
The situation has attracted attention from the FBI, US lawmakers and NVIDIA’s board of directors. The company has launched an independent investigation, saying it currently has no reason to believe that national security or confidential company information has been compromised. A further investigation must now be carried out based on Huang’s affair with an executive who reports directly to him.
Megaspeed has also come under scrutiny over allegations that it helped Chinese companies obtain restricted NVIDIA AI chips. The company reportedly purchased approximately $4.8 billion worth of NVIDIA equipment over two years, raising concerns about potential breaches of US export restrictions.
The controversy has weighed on investor confidence, with NVIDIA shares experiencing significant selling pressure. Reports that the company’s board are weighing Huang’s future with NVIDIA have added another layer of uncertainty. Huang has led NVIDIA for more than three decades and remains central to its business strategy and public identity.
NVIDIA Stock Analysis: More Volatility Ahead?
It’s clear that NVIDIA’s stock now falls under what the market calls “headline risk”. Any further scandals will continue to weigh on NVIDIA’s stock, as would a decision to oust Huang as the CEO.
NVIDIA does not have an obvious successor to Huang, making the situation even more murky. He could step down or be replaced because of these scandals, in which case NVIDIA’s short-term future would be in doubt.
There are also concerns that Washington could introduce tighter restrictions on NVIDIA’s overseas chip sales, particularly involving China and companies operating through third-party data centres. Such restrictions could limit an important potential growth market for the semiconductor giant and other companies in the sector.
For long-term investors, NVIDIA remains the AI leader for chips and infrastructure, even without Huang at the helm. A major dip in the stock’s price would likely provide a nice buying opportunity for those who have a long-term horizon.
NVDA Stock Technical Analysis
But that does not mean buying the first dip, or even the second. There has been a lot of technical damage to NVIDIA’s chart, and it represents a long road to recovery. Overnight on Wednesday, the $160 level was breached, giving the stock a new low price for 2026. The next stop is likely the area around $150, which is the previous high in 2025. That former area of resistance could flip to support if enough buyers step in.
On the monthly chart, there is a lot of support in the area around $140, which was a previous area of resistance in 2024 and 2025. The truth is, nobody knows where the sell-off will stop. Institutions are already downgrading the stock overnight with the threat of Huang leaving the company.
For long-term investors, let the dust settle. The stock needs to form a new base before it can return higher. The one caveat to that would be an imminent announcement that Huang is staying on with the company.
Jensen Huang Scandal FAQ
1. What is the Jensen Huang scandal involving NVIDIA?
The Jensen Huang scandal involves allegations that NVIDIA’s CEO had a relationship with Alice Huang, a Chinese businesswoman whom US intelligence agencies reportedly suspect of having connections to Chinese intelligence. Authorities have also investigated whether her former company, Megaspeed, helped facilitate shipments of restricted NVIDIA AI chips to Chinese companies. Jensen Huang has admitted to being unfaithful to his wife but has denied knowing about any alleged espionage operation. NVIDIA’s board launched an independent investigation, stating that it had no reason to believe company secrets or national security had been compromised. Huang has been accused of another affair with an executive at the company, although this has not been verified.
2. Could Jensen Huang be forced to leave NVIDIA?
Yes. Reports on November 11, 2026, indicated that NVIDIA’s board was meeting to discuss whether to remove Huang as CEO following the controversy. The company’s bylaws allow its board of directors to remove the CEO through a majority vote. Huang has led NVIDIA since co-founding the company in 1993, making his potential departure a significant concern for investors. Losing its longtime leader could create uncertainty around NVIDIA’s future strategy, although the company has an experienced executive team that could help manage a leadership transition.
3. Is NVIDIA stock a buy after the Jensen Huang controversy?
NVIDIA stock could present a buying opportunity for long-term investors, but there are considerable risks in the near term. The controversy has created uncertainty surrounding Jensen Huang’s leadership, potential regulatory consequences and the company’s relationship with China. However, NVIDIA remains a major supplier of AI processors, and demand for artificial intelligence infrastructure continues to support its long-term growth prospects. Investors may want to wait for greater clarity surrounding the board’s investigation and Huang’s future before making an investment decision. NVIDIA’s upcoming earnings report could also provide important insight into its financial performance and future guidance.
- JEPQ ETF Review: Is It a Good Investment for Canadians in 2026?This article discusses the JPMorgan NASDAQ Equity Premium Income ETF (JEPQ).
- Jensen Huang Scandal: What It Means for NVIDIA StockNVIDIA (NASDAQ: NVDA) is facing one of the biggest controversies in its history after CEO and co-founder Jensen Huang became embroiled in an affair with an alleged Chinese spy. While the stock recovered a bit on Wednesday, a further affair with an NVIDIA executive was revealed after the markets closed for trading. In the overnight… Read more: Jensen Huang Scandal: What It Means for NVIDIA Stock
- VDY ETF Review: Is Vanguard’s Canadian Dividend ETF a Good Investment?This VDY ETF Review covers this popular Canadian dividend ETF.
