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Nasdaq Plunges 5.5% as AI Stocks Sell Off After US Midterms
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Nvidia Shares Fall 4% as Board Investigates CEO Jensen Huang Over Alleged Chinese Spy Affair
TL;DR — the direct answer: Nvidia shares fell about 4% on Monday 9 November, wiping roughly $192 billion off the chipmaker's value, after chief executive Jensen Huang admitted to an extramarital affair with an executive alleged to have been recruited by Chinese intelligence — and the company's board opened an independent review. The wider market rallied sharply on the same day, making Nvidia the day's big exception.
What happened: Huang admitted on Sunday to an affair with Alice Huang — no relation — an executive at Megaspeed, a Singapore-based company that has bought billions of dollars' worth of Nvidia chips. A secret, months-old US State Department memo had found that she was allegedly recruited by China's Ministry of State Security, according to reports. Nvidia's board launched an investigation after the admission, and Huang said he was the target of a foreign intelligence effort. President Donald Trump added on Monday evening that the FBI was looking into the matter. The shares fell as much as 8.8% shortly after Monday's opening bell before recovering some ground to close down roughly 4.3% at $178.67, a fall of $7.97 on the day. Nvidia is expected to report quarterly earnings on 17 November, which will be the next moment the market gets hard numbers from the company.
Why it's trending: Nvidia sits at the centre of the artificial-intelligence boom — it makes the chips that power almost every major AI system — so anything that touches its chief executive moves markets and dominates tech conversation. The story is trending for three reasons at once: the personal admission, the national-security allegation, and the money. About $192 billion in market value disappeared in a single session, and Apple retook the title of the world's most valuable company as Nvidia's market cap slipped from about $4.5 trillion to about $4.3 trillion. The contrast with the rest of the market is striking: the S&P 500 rose 2.35%, its best day since April, and the Nasdaq surged 2.7%, its best day since July, while chip rivals Broadcom rose 9% and AMD rose 13%. Former SEC chair Gary Gensler warned that Huang's repeated denials of any inappropriate ties to Alice Huang could look material to pricing, given what has happened to the share price.
Background / context: Huang has led Nvidia for more than 30 years, building it from a graphics-card maker into the company at the heart of the AI buildout, with deals across every major technology firm. The shares are up about 1,250% over the past four years, since OpenAI first released ChatGPT. But the last month has been rough: the shares are down about 25% from their peak a month ago, and last week they erased their gains for the year. The tech-heavy Nasdaq closed in correction last Thursday, down more than 10% from its peak a month earlier, as investors questioned whether the data-centre spending boom is sustainable. In December 2025, Trump approved the sale of Nvidia's advanced H200 chips to China, with the federal government collecting a fee on each chip — a reminder of how politically exposed the company's China business already was before this story broke.
What we know / what's unconfirmed: Confirmed: Huang's admission of the affair, the board's independent review, the share-price fall and the closing price, the market rally, and Trump's statement that the FBI is looking into the matter. The key allegation — that Alice Huang was recruited by China's Ministry of State Security — comes from a State Department memo described in reporting, and has not been publicly confirmed by US officials, nor has any charge been announced. Whether the affair involved any transfer of information, and whether Huang will keep his job, are both unanswered: the board's review is under way and no outcome has been announced. Also unconfirmed is how much of Monday's fall was the scandal and how much was the wider AI-stock selloff that was already under way.
What happens next: The board's review will be the first thing to watch, and any statement from Nvidia about its findings could move the shares again. Nvidia reports quarterly earnings on 17 November — the first time Huang will face investors' questions with numbers attached. The FBI angle is the other open thread: Trump said the bureau is looking into the matter, but no agency has confirmed an investigation or any charges.
Frequently asked questions
Q: Why did Nvidia shares fall?
A: CEO Jensen Huang admitted to an affair with an executive at a major Nvidia customer, Megaspeed, who was allegedly recruited by Chinese intelligence, and Nvidia's board opened an independent review. The shares closed down about 4.3%.
Q: How much did Nvidia lose?
A: About $192 billion in market value on Monday 9 November. The shares closed at $178.67, down $7.97, after falling as much as 8.8% in early trading.
Q: Who is Alice Huang?
A: An executive at Megaspeed, a Singapore-based company that has bought billions of dollars' worth of Nvidia chips. She is not related to Jensen Huang. A reported State Department memo alleged she was recruited by China's Ministry of State Security.
Q: Is Jensen Huang still CEO?
A: Yes. He remains chief executive while the board's independent review is under way. No outcome has been announced.
Q: Did the whole market fall?
A: No — the opposite. The S&P 500 rose 2.35% and the Nasdaq rose 2.7% on the same day, with chip rivals AMD and Broadcom rising sharply. Nvidia was the exception.
Sources: CNN — Nvidia stock falls after investigation into CEO, bucking market rally and New York Post — Nvidia stock plunges 4% after CEO Jensen Huang admits to affair with alleged Chinese spy, 9 November 2026.
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