Jensen Huang: Microsoft overtook Nvidia as the world’s second-most valuable company on Tuesday, November 10. The chip giant’s shares fell over 6% amid doubts about the AI outlook and a probe into its CEO. Nvidia’s market value is now around $4 trillion.
What Is the Huang Controversy?
Huang, 63, admitted to an affair with an alleged Chinese spy and apologised in an email to the company. The probe follows media reports of a relationship with Alice Huang, a Chinese businesswoman who previously held a senior post at a Singapore-based data centre firm that does business with Nvidia. She is not related to him. The board announced the investigation on Sunday.
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The Chip Export Angle
The Information reported that a network linked to Alice Huang helped route chips to China. The allegations have not shown that Nvidia or Huang knowingly breached export controls or that company secrets were compromised. The Chinese government has called the narrative a groundless smear.
Board and Political Backing
Nvidia’s board said it prioritises US national and economic security, which it called paramount to the company and its shareholders. Despite strong support for Huang from the board and the US President, some market watchers doubt he can stay on as CEO. Investor and analyst Gary Black called it “key-man risk,” given Huang’s central role at the company.
Not Only the Scandal
The sell-off wasn’t driven by the affair alone. Reuters says the drop also reflected uncertainty over the AI boom. The swap also wasn’t a sign of strength at Microsoft. Its own stock fell more than 3% by midday and, per one report, the lead was erased briefly.
What Next for Nvidia?
The board’s independent investigation will decide how long the scrutiny of Huang lasts. Investors will also watch Nvidia’s AI demand and whether the ranking shifts again.
