Nvidia CEO's 'Huang Hung Lo' Affair Tanks Stock--$190 Billion Wiped Out

 

Nvidia's board launched an independent investigation following revelations of an affair between CEO Jensen Huang and Alice Huang. Reports surfaced indicating that US intelligence agencies were looking into potential national security concerns and suspected links to Chinese intelligence.

Nvidia's stock plunged by over 4% to 8%, erasing roughly $190 billion in market value during the initial selloff. Jensen Huang's personal net worth fell by billions within the first minutes of trading following the public admission.

Huang admitted to the personal relationship, apologized to employees, and agreed to cooperate with the board's internal probe. Nvidia stated there is currently no evidence suggesting that proprietary technology or national security secrets were compromised.

A shareholder class-action lawsuit was filed against Nvidia and Huang, alleging misleading statements and corporate governance failures related to the executive's conduct.

The lawsuit targets Nvidia Corporation and Jensen Huang directly under federal securities laws (Sections 10(b) and 20(a) of the Securities Exchange Act of 1934)...The complaint asserts that Nvidia and Huang issued false and misleading statements to investors by failing to disclose that Huang was involved in an undisclosed relationship with Alice Huang, a former executive at Singapore-based Megaspeed.

Shareholders contend that Nvidia failed to reveal that Alice Huang was under scrutiny by U.S. intelligence agencies as a suspected asset for China’s Ministry of State Security (MSS). The lawsuit claims this created severe unstated national security, regulatory, and reputational hazards for the company.