Nvidia is going through a major crisis. The artificial intelligence chip giant lost around $430 billion in market capitalization on November 9-10, 2026. Its CEO Jensen Huang faces calls to resign after revelations about his ties to a Chinese businesswoman suspected of espionage. The board is now considering its future, as new accusations complicate the situation.
In brief
- Nvidia lost around $430 billion in valuation in two sessions.
- Jensen Huang is the subject of an independent investigation into a possible Chinese spying operation.
- The board of directors is examining his continued leadership of the group, without an official decision announced.
Nvidia loses $430 billion in two sessions
The fall is brutal. After approaching $5.8 trillion in capitalization at the beginning of October, Nvidia is undergoing a new correction on Wall Street. The stock lost 4.3% on Monday, November 9, then 5.5% on Tuesday, ending at $168.89. In two sessions, around $430 billion in valuation disappeared.
The decline reached almost 29% from the closing high of $239.24 recorded on October 6. Gains accumulated since the start of 2026 have also been erased. The situation became even more complicated on Wednesday. Nvidia rallied nearly 3% during the session, before falling more than 8% in after-hours trading. The Wall Street Journal had just revealed that the board of directors was preparing a possible departure of Jensen Huang.
The stock market value potentially erased since the start of the crisis could thus reach around 600 billion dollars if this new decline is confirmed during the regular session. No final decision has been announced.
This volatility comes a few days before the publication of Nvidia’s quarterly results, scheduled for November 17. Investors were especially waiting for information on demand for AI chips and spending by large data centers. They must now also monitor the future of the manager who founded the company in 1993.
Alleged espionage case threatens Jensen Huang
The origin of the crisis dates back to the revelations concerning Alice Huang, a Chinese businesswoman with no family ties to the leader of Nvidia. American intelligence suspects her of having participated in an operation intended to obtain sensitive information and facilitate access for Chinese companies to American technologies.
Jensen Huang admitted to having had an extramarital affair with her. This relationship would have facilitated the delivery of Nvidia chips worth at least $7.5 billion to China.
These accusations have not been publicly established by a judicial decision. Beijing rejects suspicions of espionage. The case affects a sector already subject to strong restrictions. Washington has been seeking for several years to limit China’s access to the most efficient semiconductors.
Nvidia had notably developed AI chips adapted to American restrictions in order to preserve its presence on the Chinese market. On November 8, the board announced the opening of an independent investigation.
Nvidia specifies that it has no reason to believe that its industrial secrets or American national security have been compromised. The company called on the firm Wachtell, Lipton, Rosen & Katz to support the investigations.
Jensen Huang publicly apologized to his family and colleagues. He also pledged to cooperate with the investigation. But political pressure is increasing. Republican Senator Kevin Cramer is calling for his resignation, believing that this situation could expose the leader to blackmail attempts. Former White House economic adviser Larry Kudlow also called on Huang to leave office.
Nvidia board considers CEO’s future
The new revelations have accelerated internal discussions. According to ReutersNvidia directors were to meet Wednesday evening to decide whether to retain Jensen Huang.
The council has eleven members, ten of whom are considered independent. A majority can dismiss the general director, even without formally established fault. The situation contrasts with the November 8 press release, in which the directors reaffirmed their confidence in Huang.
The New York Times also reported on Wednesday a second alleged extramarital affair, this time with an Nvidia executive. Reuters was unable to independently verify this information.
The possible departure of the manager would pose a succession problem. Jensen Huang owns approximately 3.6% of the capital and directly supervises several dozen managers. He built a large part of the group’s technological strategy.
Financial director Colette Kress appears among the people likely to temporarily take over management. No replacement has been made official. The markets remain particularly sensitive to this uncertainty. Nvidia occupies a vital place in the artificial intelligence infrastructures used by OpenAI, Microsoft, Meta and many other companies.
A sudden change in direction could complicate some projects, even if demand for computing power remains high. The group must also answer questions from Congress about chip exports to China.
These tensions have already caused corrections. In March, new American restrictions on AI chips caused Nvidia stock to decline. This time, investors are waiting for two answers: the findings of the independent investigation and the board’s decision on Jensen Huang. His departure remains a possibility, not yet a given.
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