Nvidia and its CEO, Jensen Huang, were hit with a proposed class action lawsuit on Monday, alleging they misled shareholders by hiding Huang’s connections to a suspected Chinese spy.
A complaint lodged in federal court in San Jose, California, claims that the defendants deceived investors regarding Huang’s purported involvement with Alice Huang, a former executive of Singapore-based Megaspeed, who is not related to him. The lawsuit also contends that they failed to reveal that this situation posed national security issues that could jeopardize Nvidia’s reputation and business outlook.
Last month, The New York Times reported on the alleged affair and mentioned that U.S. officials had determined Alice Huang to be a Chinese intelligence asset.
Nvidia has not yet responded to requests for comment. Jensen Huang acknowledged to Nvidia employees that he had been unfaithful to his wife, but did not provide details about the alleged relationship.
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.
Huang, a co-founder of Nvidia, has steered the Santa Clara, California-based firm to become the leading chipmaker globally, making him a key figure in the artificial intelligence sector.
Nvidia announced an investigation into the situation on Sunday. On Monday, its shares dropped by 4.3%, leading to a decrease in the company’s market value by roughly $190 billion USD. The lawsuit was filed just five minutes after the U.S. stock market closed.
It is not unusual for shareholders to initiate lawsuits following sudden drops in stock prices. Led by Mark Kistenmacher, Nvidia shareholders are pursuing unspecified damages against the defendants.
Kistenmacher aims to represent any individual who purchased Nvidia shares from October 9, 2025, to November 8, 2026 — the period when The New York Times first reported on Huang’s meeting with the alleged spy and when Nvidia announced it was investigating claims that its CEO was a target of foreign intelligence.
