Nvidia Board Launches Probe: CEO Targeted in Intel Operation

Nvidia announced on Sunday that its board of directors has started an independent investigation. The probe will determine whether Chief Executive Officer Jensen Huang was the target of a foreign intelligence effort. A committee of independent directors, supported by outside legal counsel, will oversee the process.

The move follows a report by The New York Times that detailed a relationship between Huang and Alice Huang. Alice Huang is a former executive at Megaspeed, a Singapore-based company. US authorities investigated Megaspeed and concluded that Alice Huang was a Chinese intelligence asset. The company buys artificial intelligence chips from Nvidia.

US officials have examined Megaspeed for potential links to Beijing. They suspected the firm helped China obtain advanced AI chips that are restricted from export. This scrutiny has intensified since 2022, when Washington implemented stricter export controls to limit China's access to critical semiconductor technology.

Jensen Huang addressed the situation directly in a message to employees. He admitted to being unfaithful to his wife and said he took full responsibility for his actions. "My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," he wrote. He stated that he remains committed to protecting Nvidia and supporting American national security.

Nvidia said the board has confidence in Huang and his leadership team. The company noted that there is currently no reason to believe US national security or Nvidia secrets were compromised. However, the inquiry will examine all available information. Huang has agreed to cooperate fully with the review.

President Donald Trump commented on the allegations on Sunday. He said he had not spoken to Huang about the report but called him a fine person. "I hope everything’s fine. He’s done such an incredible job," Trump said. When asked if he should have acted on intelligence he was briefed on about a year ago, Trump said he did not think so. He called Huang an honorable guy who probably has an excuse.

Secretary of State Marco Rubio declined to comment on the matter. China’s Foreign Ministry did not respond to a request for comment. Megaspeed also did not respond to inquiries outside of business hours.

The investigation arrives at a difficult time for Nvidia’s stock. The company’s market value has fallen to $4.5 trillion after shedding all gains from this year. Investors are worried about the sustainability of the AI boom that drove the company's rise. Shares are down amid a wider retreat in the tech sector.

Dan Ives, a senior managing director at Yorkville Ives & Co., said the situation creates risk for the stock. He noted that Huang is central to the company's strategy. "There is clearly risk that Jensen could be removed as CEO depending on the Board investigation," Ives said. He added that the news would likely spark congressional inquiries.

Josh Gilbert, lead analyst at eToro, said any doubt over Huang's position would matter to shareholders. Gilbert noted that the investigation might dent investor sentiment but would not change the company's long-term trajectory unless there is a change in leadership.

Top Republican lawmakers in the US House have already called for Huang to brief Congress on the report. In a letter dated November 4, they stated that the report raises national security concerns regarding China's access to sensitive US technology. They emphasized the need for Congress to determine the extent of the risk to national security.

Nvidia maintains a large presence in Israel, with over 5,000 employees working in seven research and development centers. These sites include locations in Yokne’am, Tel Aviv, Jerusalem, Ra’anana, and Beersheba. The company is also planning a new site in Kiryat Tivon.