When a CEO’s name lands in a spy story, investors ask two questions. Is his job safe? And what happens to the stock if he stays or goes?
Nvidia shareholders now face both, with a deadline. CEO Jensen Huang has until November 11 to tell Congress whether he will answer questions about a suspected Chinese spy.
The stock is already bruised. It closed at $186.64 on November 6, a day after a 9.3% plunge.
What Does the Spy Memo Say?
A US intelligence memo claims China’s main spy agency recruited Alice Huang, an executive at Nvidia customer Megaspeed. The New York Times reported it first. The Financial Times added that the two allegedly had a romantic relationship.
The memo is not public. Its claims are unproven. Nvidia calls the contacts “not unusual.”
Here is the uncomfortable part. Trump was briefed on Alice Huang about a year ago and chose not to act, the Times reported. Officials feared hurting Nvidia’s chip sales.
Now three House committee chairs want answers. Their November 4 letter asks Huang for a closed-door briefing. It accuses no one of wrongdoing.
Is Huang’s Job Safe?
For now, nobody with power over it has called for him to go. Trump called Huang “very aboveboard” on October 31, but said the case was “a very complex issue.”
On November 8, Nvidia’s board went a step further. It launched an independent investigation into reports that Huang was “the target of a foreign intelligence effort,” according to a company statement.
A committee of independent directors will run the review with outside counsel. The board said it has no reason to believe Nvidia’s secrets or US national security were compromised.
It also reaffirmed its confidence in Huang. The board said he fully supports the review and will cooperate.
Senator Elizabeth Warren posted a sharper line on October 29.
“Huang and NVIDIA’s board owe Congress answers.”
Nvidia’s own annual report admits the company is “highly dependent” on its longtime executives.
If he did leave, history cuts both ways:
- Apple fell about 5% after hours when Steve Jobs stepped down in 2011.
- Intel rose more than 3% when Pat Gelsinger left in 2024.
November 11 is also when a weekly batch of Nvidia options expires. OptionCharts data shows traders pricing a range of $179.35 to $198.09.
Not every drop is about Huang. AMD fell 17.3% in the same November 5 AI chip selloff.
Earnings land November 17. The proposed briefing is the next day. Nvidia has not said whether Huang will show up.
