Nvidia stock faced a sharp decline on Monday as the tech giant’s board of directors launched an independent investigation into CEO Jensen Huang. The move follows explosive reports detailing an extramarital affair between Huang and Alice Huang, a Chinese executive at the data firm Megaspeed. US intelligence officials have suggested that the executive may have been operating as an intelligence asset for Beijing, potentially using her relationship with the Nvidia chief to gain sensitive insights into the company’s operations and the Trump administration’s artificial intelligence strategy.

While Jensen Huang has publicly apologized for his infidelity, the fallout has triggered significant market instability, with Nvidia shares dropping over five percent in recent trading. Beijing has dismissed the allegations as baseless smearing, but the controversy has drawn immediate attention from Capitol Hill, with the House Select Committee on China requesting a briefing on the firm’s security protocols. As the board works to determine if any national security or trade secrets were compromised, industry analysts warn that the investigation creates a "black eye" for the company and could cast a long-term shadow over its leadership and stock performance.