NVIDIA CEO Jensen Huang is facing a proposed class-action lawsuit alongside his company after shareholders accused them of misleading investors over his alleged affair with a Chinese businesswoman suspected of working for Beijing’s intelligence services.
The lawsuit, filed in a federal court in San Jose, California, on November 9, claims that NVIDIA and Huang failed to disclose important information about the CEO’s relationship with Alice Huang, a former executive of Singapore-based technology company Megaspeed.
The shareholder action comes as NVIDIA faces growing scrutiny over its business dealings involving China, national security concerns and the potential consequences of the allegations surrounding its chief executive.
Shareholders Accuse NVIDIA Of Misleading Investors
The complaint was filed by investor Mark Kistenmacher, who is seeking class-action status on behalf of people who purchased NVIDIA shares between October 9 and November 8, 2026.
According to the lawsuit, NVIDIA had previously characterised Jensen Huang’s interactions with Alice Huang as ordinary business dealings. However, shareholders argue that the company’s statements were misleading because they allegedly failed to disclose the nature of their personal relationship and the potential risks surrounding it.
The New York Times had previously reported that US intelligence officials suspected Alice Huang of gathering information for the Chinese government.
Alice Huang was formerly associated with Megaspeed, a Singapore-based company that reportedly purchased more than US$4.8 billion (approximately S$6.1 billion) worth of NVIDIA chips over two years.
The lawsuit alleges that NVIDIA’s failure to disclose the relationship exposed investors to risks involving the company’s reputation, business prospects and national security concerns.
Jensen Huang Admits To Being Unfaithful
The controversy escalated on November 8 when NVIDIA announced that it was launching an internal investigation into reports that its chief executive had potentially been targeted by a foreign intelligence operation.
Jensen Huang subsequently acknowledged to NVIDIA employees that he had been unfaithful to his wife, although he did not publicly provide details of the alleged relationship.
He also expressed support for the investigation and pledged to cooperate fully.
The company’s board has appointed external legal advisers to conduct an independent investigation into the matter.
It is worth noting that Jensen Huang and Alice Huang are not related, despite sharing the same surname.
NVIDIA Shares Face Massive Losses
The allegations have also had a significant impact on investor confidence.
NVIDIA shares fell approximately 4.3% on November 9, wiping out around US$190 billion (S$243 billion) in market capitalisation in a single trading session.
The stock continued declining on November 10, with Reuters reporting that the company was on track to lose more than US$470 billion (approximately S$600 billion) in market value over two trading sessions.
The market reaction reflects growing concerns about NVIDIA’s corporate governance, its exposure to geopolitical tensions and the potential implications of the allegations involving its CEO.
The situation has also attracted attention from US authorities. President Donald Trump confirmed that the FBI was looking into the matter, although he suggested that Huang had told him he was unaware of the woman’s alleged intelligence connections.
Lawsuit Seeks Compensation For Affected Investors
The shareholder lawsuit seeks unspecified damages for investors who purchased NVIDIA shares during the proposed class-action period.
The complaint argues that investors suffered financial losses following the company’s disclosures and the subsequent decline in its share price.
NVIDIA had not immediately issued a response to the lawsuit when Reuters reported the filing.
For now, the allegations against Alice Huang remain under investigation, and the shareholder lawsuit has yet to establish whether NVIDIA or its CEO violated securities laws.
The case could nevertheless become a major corporate governance challenge for NVIDIA, particularly given the company’s importance to the global artificial intelligence industry and its position as one of the world’s most valuable technology companies.