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November 12, 2026

Findivoza

Business & Money

Nvidia Loses $430 Billion in Two Days as Board Investigation Deepens

Faizan Altaf

Nvidia, the world’s most valuable chipmaker, has lost about $430 billion in market value in just two trading sessions, as a scandal around its chief executive, Jensen Huang, turned into a full leadership crisis. Shares fell for a second straight day on Tuesday, and Wall Street analysts are now openly asking whether Huang can stay in charge.

The sell-off began after Huang admitted to an extramarital affair with a woman who, according to US intelligence reporting, was working for Beijing. Nvidia’s board has now opened an independent investigation, and several major brokerages have cut their ratings or price targets on the stock. For a company at the centre of the global artificial intelligence boom, the questions are no longer only about one man’s private life. They are about governance, security and trust.

How much money Nvidia has lost

The numbers tell the story of a very fast fall.

On Monday, 9 November, Nvidia shares closed at $178.67, down 4.27% on the day. On Tuesday, 10 November, they fell again, closing at $168.89, down a further 5.47%. Together, the two days wiped roughly 9.5% off the share price and about $430 billion off the company’s market value — around $192 billion on Monday and $236 billion on Tuesday.

The damage goes further back. Since Nvidia’s closing high on 6 October, the company has lost about $1.7 trillion in market value. That longer fall includes declines that happened before Huang’s admission became public, so it would be wrong to blame the whole amount on the affair. But the last two days have clearly made things worse.

During Tuesday’s trading, Nvidia briefly slipped below a market value of $4 trillion and fell behind Microsoft in the rankings of the world’s most valuable companies. It ended the session back in second place, behind Apple. Shares steadied on Wednesday, trading about 4% higher, but the stock remains on track for its biggest weekly drop since March 2025.

What happened with Jensen Huang

Jensen Huang, 63, founded Nvidia in 1993 and has led it ever since. He is one of the most famous chief executives in the technology world, and his black leather jacket has become his trademark. Under his leadership, Nvidia grew from a maker of graphics chips for video games into the company that supplies the chips powering almost all of the world’s most advanced AI systems.

Last week, Huang admitted that he had an affair with a woman identified as Alice Huang, a former executive at Megaspeed, a Singapore-based data centre company. The New York Times reported that US intelligence officials had identified Alice Huang as working for Beijing, and that a classified US intelligence memo described her as having been recruited by China’s Ministry of State Security to target Nvidia’s chief executive.

Before acknowledging the affair, Huang had described his dealings with the businesswoman as ordinary business. The change in his account is one reason investors and lawmakers are asking hard questions: what did the board know, when did it know it, and did earlier explanations give investors an accurate picture?

China’s foreign ministry has rejected the espionage allegations. Nvidia’s board says it has no reason to believe that company secrets or US national security have been compromised. Those positions matter, and they belong alongside the allegations. But they have not stopped the slide in the share price.

The board opens an independent investigation

On Tuesday, 10 November, Nvidia’s independent directors hired former acting US Attorney Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to run an independent investigation. The board has said it still has confidence in Huang and his leadership team.

Huang has told employees that his conduct damaged trust beyond his family. In a message to staff, he wrote: “My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility.” He has also committed to cooperating with the board’s investigation. Analysts cited by CNBC expect the review to take four to six weeks.

Political pressure is building at the same time. Republican Senator Kevin Cramer has called for Huang to resign, saying the situation creates a risk of extortion. That is one senator’s demand, not a decision by Nvidia’s board. House Republican leaders have also called Huang to a closed-door briefing next week, on 18 November. President Donald Trump said on Monday that the FBI is also looking into the matter.

Shareholders have also gone to court. On Monday, a proposed class action was filed in federal court in San Jose, California, accusing Nvidia and Huang of defrauding shareholders by concealing Huang’s alleged relationship. The proposed class covers investors who bought the stock between 9 October 2025 and 8 November 2026. The lawsuit does not specify damages, and the claims have not been tested in court.

Why the affair matters to the business

An affair alone does not prove that company secrets were shared or that business decisions were affected. But the details reported so far explain why investors are treating this as more than a personal matter.

First, there is the question of access. A chief executive’s judgement is part of what investors are buying. If a foreign intelligence service targeted the head of a company whose chips are central to American AI leadership, that raises obvious security questions, even if nothing was ever passed on.

Second, there is the question of business. Reuters, citing The Information, reported that Alice Huang’s connections helped arrange at least $7.5 billion in Nvidia chip shipments to Chinese firms. Reuters said it could not independently verify those reports. The claim remains an allegation, but it helps explain why the scrutiny reaches beyond Huang’s private life and into how Nvidia does business in China — a market already restricted by US export controls.

Third, there is the question of timing. Nvidia’s chips are at the centre of a technology rivalry between the United States and China. Washington has placed tight limits on which advanced chips American companies can sell to China. Any suggestion that personal relationships influenced sales into China would be taken very seriously in Washington.

Wall Street turns cautious

The sharpest new blow this week came from the brokerages. On Wednesday, Baird downgraded Nvidia to “Neutral” from “Buy” and cut its price target by 60%, to $200 from $500. Baird pointed to growing risks from US restrictions on chip sales to China and a possible slowdown in spending on AI.

Baird also warned that growth in spending by the big AI companies — the so-called hyperscalers — could slow to about 40% a year in 2027, held back by supply limits and early signs of softer demand. It said demand for Nvidia’s H300 chips is running ahead of supply, but that 10% to 30% of advance orders could be at risk of cuts because of timing problems. On leadership, Baird said the chances of a chief executive change are rising into 2027, and that an outsider is more likely to be hired than someone promoted from inside.

Baird was not alone. Morgan Stanley removed Nvidia from its list of top picks after the stock fell more than 25% in the month since it was named a top pick. Bank of America removed Nvidia from its US 1 List. Wells Fargo cut its price target to $300 from $315, and Citigroup cut its target to $285 from $315. Wells Fargo and Citigroup were among at least three brokerages that cut their price targets earlier in the week.

A bad week for the wider market too

Nvidia’s troubles did not happen in isolation. US stocks fell more broadly on Tuesday after a hotter-than-expected inflation report. Consumer prices rose 0.4% in October from the month before, with core prices up 0.3%, both above what economists had expected. The figures pushed up expectations that the Federal Reserve could raise interest rates in December. Fed Governor Christopher Waller even suggested he could support a half-point rise.

That backdrop made Nvidia’s fall worse. The chipmaker has been the biggest single driver of the stock market’s gains in recent years, and when its shares slide, the whole market feels it. The S&P 500 is now about 3.7% below its high of 6 October, and the Nasdaq is about 11% below its peak.

What the allegations do — and do not — prove

It is important to be clear about what is known and what is not.

What is known: Huang admitted the affair. The board has opened an independent investigation and hired outside lawyers. The share price has fallen sharply. Several brokerages have downgraded the stock.

What is alleged but not proven: that Alice Huang was working for Chinese intelligence, that she was recruited to target Huang, and that her connections helped arrange billions of dollars in chip shipments to China. These claims come from intelligence reporting and news reports. They have not been confirmed by a court or by Nvidia, and China’s foreign ministry denies them.

What Nvidia says: the board has no reason to believe company secrets or US national security were compromised. That is the company’s position, and investors will be watching the independent investigation to see whether it holds up.

The distinction matters. There is a real difference between an alleged intelligence operation targeting a chief executive and a proven plan to damage Nvidia or its share price. Nothing in the reporting so far establishes that Beijing arranged for the revelations to become public or intended the sell-off that followed.

What happens next

Three dates matter in the coming days.

First, Nvidia reports its quarterly results after markets close on Tuesday, 17 November. Investors will be looking at demand and revenue, but also for any sign of how the investigation is affecting the business and whether the board says anything new about leadership.

Second, House Republican leaders have asked Huang to appear for a closed-door briefing on Wednesday, 18 November. It is not yet confirmed whether he will attend.

Third, the board’s independent investigation is expected to take four to six weeks. Until it reports, uncertainty is likely to hang over the stock.

For ordinary investors, the lesson of the week is a familiar one. A company’s value rests on more than its products. When trust in the person running the company is shaken, the market can move very fast — even for the most valuable chipmaker in the world.

Frequently asked questions

How much has Nvidia lost?

About $430 billion in market value across the trading sessions of 9 and 10 November, as the share price fell about 9.5% from its Friday close. The wider fall since the 6 October high is about $1.7 trillion, though that covers a longer period and is not all linked to the scandal.

What is the board investigating?

Nvidia’s independent directors hired former acting US Attorney Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to investigate the circumstances around chief executive Jensen Huang’s relationship with a businesswoman reported to have been targeted by Chinese intelligence. The review is expected to take four to six weeks.

Has Huang resigned?

No. Senator Kevin Cramer has called for him to resign, but that is one senator’s demand. Nvidia’s board has expressed confidence in Huang and his leadership team, and Huang has said he will cooperate with the investigation.

Have shareholders sued Nvidia?

Yes. A proposed class action was filed in federal court in San Jose, California, on Monday, 9 November, accusing Nvidia and Huang of defrauding shareholders by concealing Huang’s alleged relationship. The proposed class covers investors who bought the stock between 9 October 2025 and 8 November 2026. The claims have not been tested in court, and the court has not certified the class.

Why does the affair affect the share price?

Investors worry about three things: whether sensitive information was exposed, whether personal connections influenced business decisions such as chip sales to China, and whether Huang’s judgement can still be trusted. The uncertainty alone is enough to push some investors to sell.

When will we know more?

Nvidia reports quarterly results on 17 November, and Huang has been asked to brief House Republican leaders behind closed doors on 18 November. The board’s investigation is expected to conclude within four to six weeks.

Conclusion

Nvidia’s two-day, $430 billion slide is a reminder that even the world’s most important technology company is only as strong as the trust people place in it. The facts of the affair are admitted. The security allegations are not proven. The board’s investigation, the quarterly results on 17 November and the congressional briefing the day after will decide whether this becomes a passing crisis or a turning point for the company that powers the AI age.

Sources

This article is for general information and education only. It is not legal or financial advice.

Faizan Altaf

Faizan Altaf is the founder and author of findivoza.com, a news blog covering world, Pakistan, business, technology, health and sport in plain English. He writes for general readers who want clear, trustworthy news without jargon. His work focuses on explaining what happened, why it matters, and what to watch next.

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