Nvidia Sued by Shareholder as Report Ties $7.5 Billion in Chips to Suspected Spy Network

A shareholder sued Nvidia and its chief executive, Jensen Huang, on Monday, accusing them of hiding Huang’s affair with an executive at a Singapore-based company that U.S. officials have identified as a Chinese intelligence asset. The suit landed as a new report said at least $7.5 billion in Nvidia hardware reached Chinese companies since 2023, and Nvidia shares fell for a second straight day.

Shareholder Mark Kistenmacher filed the proposed class action in federal court in San Jose, California, five minutes after the stock market closed on Monday, Reuters reported. The 17-page complaint covers investors who bought Nvidia securities between Oct. 9, 2025, and Nov. 8, 2026, and accuses the company and Huang of violating Section 10(b) of the Securities Exchange Act of 1934, with a separate Section 20(a) claim against Huang. The suit, filed by the Rosen Law Firm, seeks unspecified damages and a jury trial.

The lawsuit and the four statements

The complaint says four public statements by Nvidia and Huang about Megaspeed, a Singapore-based company, and Alice Huang, an executive there who is not related to the chief executive, misled investors because they left out his affair with her. The New York Times reported last month that U.S. officials had identified Alice Huang as a Chinese intelligence asset. China’s foreign ministry called that claim unsubstantiated.

Three of the statements came from Nvidia spokesman John Rizzo in Times articles. In October 2025, Rizzo said Nvidia’s compliance team had found Megaspeed was owned and run by a company based outside China and that Nvidia staff had found no sign of chip diversion on a visit to its facilities. On Oct. 29, 2026, Rizzo said Huang’s contacts with Alice Huang were not unusual for a chief executive who deals with thousands of customer executives a year. The fourth statement was Huang’s own: in a Bloomberg interview published the next day, he called Nvidia’s dealings with Megaspeed normal and said the company had studied all of Megaspeed’s deployments of its chips and counted each one.

The complaint says Megaspeed is suspected of helping China get around U.S. export controls, and that the undisclosed affair raised national security concerns about Nvidia that put its reputation and business prospects at risk if revealed.

Shares fall for a second day

Nvidia’s board opened an independent investigation on Sunday into reports that Huang was the target of a foreign intelligence effort, and Huang admitted to employees that he had been unfaithful to his wife. The board said it had no reason to believe national security or Nvidia secrets were compromised, and that Huang supported the review and would remain chief executive while it continued. US News America reported on the board investigation on Monday.

On Tuesday, The Information reported that at least $7.5 billion worth of Nvidia hardware had been shipped to Chinese companies since 2023 through a network linked to Alice Huang, citing two people familiar with the matter. Nvidia shares fell more than 3% on Tuesday after dropping 4.27% on Monday to close at $178.67, while rival chipmakers AMD and Broadcom each gained about 4%.

Monday’s drop cut about $190 billion from Nvidia’s market value, according to Reuters, even as the Nasdaq Composite rose 2.74% that day. AMD rose 13% and Broadcom about 9% on Monday.

In Washington, House Democratic Leader Hakeem Jeffries said Monday that Congress needs more answers. President Donald Trump told reporters that the FBI was looking into Huang’s relationship and expressed support for the chief executive. “I know the FBI is looking into it in terms of something else, and I think that he’ll be in good shape,” Trump said.

No class has been certified in the case. In a notice to investors, the Rosen Law Firm said shareholders who want to serve as lead plaintiff must ask the court by Jan. 8, 2027. Nvidia did not immediately respond to a Reuters request for comment on the lawsuit.

Reporting based on coverage by Reuters, The New York Times, The Information and Nvidia.