Nvidia chief faces alleged second affair as board reportedly weighs his future

Key Points:

• House Democrats accuse former President Trump of ignoring warnings from Secretary of State Marco Rubio about Nvidia CEO Jensen Huang’s alleged ties to a suspected Chinese spy, while advanced chip sales to China continued under the administration.
• Nvidia shares plunged up to 8% amid reports of Huang’s alleged affair with an Nvidia executive and an investigation into his relationship with an alleged Chinese intelligence operative, threatening his leadership of the AI chipmaker.
• Lawmakers, including Rep. Raja Krishnamoorthi and House China Select Committee Chairman John Moolenaar, call for tighter export controls and demand transparency from Huang regarding national security concerns linked to China’s access to advanced Nvidia technology.
• Former FBI and NSA officials warn that foreign intelligence agencies exploit personal and professional relationships, including “honeytraps,” to gain access to Silicon Valley technology, underscoring broader espionage risks highlighted by the Huang scandal.
• Despite the controversy, some investors remain bullish on Nvidia’s long-term growth potential, while others downgrade the stock due to uncertainties about Huang’s future and data center spending; Nvidia’s board reportedly prepares to oust Huang amid ongoing investigations.