Nvidia Sheds About $400 Billion in Two Days as CEO Fallout Deepens and Chip-Shipment Report Emerges
Nvidia shares fell for a second straight day on Tuesday, wiping out about $400 billion in market value over two sessions as the fallout deepened from the board investigation into chief executive Jensen Huang and a new report linked his admitted extramarital affair to shipments of Nvidia chips to Chinese firms.
The chipmaker’s stock closed at $178.67 on Monday, down 4.3 percent, and fell again on Tuesday, trading around $168 in the early afternoon, down roughly 6 percent on the day and about 10 percent below Friday’s close of $186.64. Reuters reported that Nvidia was on track to shed about $400 billion in market value over the two sessions, one of the largest two-day losses of value ever recorded by a single company.
The selling stood out because it came on days when the rest of the market was rising. On Monday, the Dow Jones Industrial Average jumped more than 2 percent and the S&P 500 had its best day since April, while the PHLX Semiconductor index rose 6.9 percent. Among the large chip and artificial intelligence stocks, only Nvidia and the server maker Super Micro Computer closed lower.
A second day of heavy selling
Tuesday’s decline followed a new report from The Information, published on Tuesday, that said Huang’s relationship with Alice Huang helped facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese firms since 2023, about 240,000 H100, H200 and some A100 processors.
The report describes a network of companies across China and Singapore that Alice Huang’s husband and sister built to acquire Nvidia chips. At its center was Shanghai Century Litong, which became one of Nvidia’s preferred cloud partners in 2023, with priority access to its chips. Century Litong rented out computing capacity and ran data centers using Nvidia chips, including some barred from sale to China, and some of the chips ended up serving Alibaba, Tencent and smaller Chinese artificial intelligence labs, according to the report.
When orders for export-restricted chips stalled, Alice Huang secured supplies through her ties to Nvidia and its distributors, the report said, and she used her relationship with Jensen Huang to bolster her credibility while keeping her own role vague and avoiding a paper trail. The report does not say that Jensen Huang knew of or approved any of this.
Reuters said it could not independently verify the report, and Nvidia did not immediately respond to its request for comment. Century Litong said it obtained its partner qualifications and business resources lawfully, and it denied doing business with Alice Huang.
The New York Times has reported that United States officials have concluded Alice Huang, who has worked as an executive at the Singapore company Megaspeed, is a Chinese intelligence asset. She has not been charged with any crime, and China denies that she is a spy.
The investigation that started the slide
The sell-off began on Sunday, when Huang admitted in a memo to staff that he had been unfaithful to his wife. Nvidia’s board opened an independent investigation the same day into reports that Huang had been the target of a foreign intelligence effort. The board said it had no reason to believe that national security or company secrets were compromised, that Huang supports the review, and that it has confidence in him and his leadership team.
President Donald Trump said on Monday that Huang told him he did not know Alice Huang was an intelligence operative. Trump also said the FBI is looking into Huang, according to Reuters.
Monday’s trading was extraordinary by any measure. About 459.1 million Nvidia shares changed hands, the most in a single day in more than three years. The stock fell as much as 8.8 percent during the session before closing down 4.3 percent, a loss of roughly $190 billion in market value in a single day.
A shareholder class-action lawsuit was filed against Nvidia on Monday in federal court in California, adding to the pressure on the stock.
Tuesday brought little relief. Nvidia opened 2.6 percent lower, and by the early afternoon it was down about 6.2 percent at $167.62, about four times the 1.6 percent fall in the PHLX Semiconductor index. The Nasdaq Composite was down 1.4 percent, while Broadcom, another chipmaker, rose 2.4 percent. Hotter-than-expected October CPI data, which showed consumer prices rising 0.4 percent against a forecast of 0.3 percent, also weighed on stocks on Tuesday.
Why this matters
Nvidia is the world’s most valuable chipmaker and the bellwether of the artificial intelligence trade. Its processors power the data centers behind the largest AI systems, and its stock has become the single most watched barometer of the AI boom. A two-day slide of about 10 percent, wiping out hundreds of billions of dollars, therefore matters far beyond Nvidia’s own shareholders.
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The questions facing investors now go beyond one chief executive’s personal conduct. The central issue is whether the affair and the board investigation point to any damage to Nvidia’s business, including its compliance with United States export controls on advanced chips sold to China.
Bank of America’s analysts wrote on Tuesday that the investment debate is whether the episode remains company-specific or triggers restrictions and disruption across AI infrastructure. “We would not equate allegations with proven business damage,” the bank’s analysts wrote.
Other analysts were more cautious. Bernstein’s analysts said on Monday that the overhang on Nvidia’s shares “will be around for a while.” Matt Bryson of Wedbush said losing Huang would be a major negative, given his “hands-on operating style.” Citi’s Atif Malik offered no view of his own, noting only that the company has stated Huang will remain chief executive while the investigation proceeds.
Dan Ives of Yorkville Ives & Co. wrote on Tuesday that investors are assigning roughly a 15 percent chance that Huang is removed as chief executive. Ives expects the board’s investigation to take four to six weeks, and he has said Nvidia would be worth 25 to 30 percent less without Huang.
The contrast with Nvidia’s rivals underlined how company-specific the selling has been. Advanced Micro Devices, Nvidia’s main rival in AI chips, closed 13.3 percent higher at $508.58 on Monday after Oppenheimer analyst Rick Schafer upgraded the stock to Outperform from Market Perform with a $600 price target. Broadcom rose 8.8 percent, Marvell Technology 9.5 percent, and Nebius, which rents out computing power to AI developers, 9.2 percent.
What happens next
Nvidia reports results for its third quarter on November 17, with a call for analysts at 5 p.m. Eastern time. That report will be the first chance for investors to hear from the company’s leadership since the investigation began, and it will show whether demand for its chips remains as strong as it has been.
Huang has until Wednesday to reply to three Republican House committee chairs who have asked him to attend a closed-door briefing on November 18. The board’s investigation is expected to take four to six weeks, according to Ives, which means the uncertainty around Huang’s position is likely to hang over the stock into December.
For now, the market has delivered its verdict on the first two days: about $400 billion of value gone, a chief executive under investigation, and a set of questions about China, export controls and leadership that Nvidia has yet to answer in full.
Frequently Asked Questions
Why is Nvidia stock falling?
Nvidia has fallen on both trading days since Huang’s memo to staff on Sunday and the start of the board’s investigation. It closed 4.3 percent lower on Monday while most other chip and AI stocks rebounded, and it fell again on Tuesday after hotter-than-expected inflation data and a report from The Information that Alice Huang’s relationship with Jensen Huang helped facilitate at least $7.5 billion of Nvidia chip shipments to Chinese firms, a report that has not been independently verified.
What did The Information report claim about chip shipments to China?
The Information reported, citing two people who know her, that Alice Huang’s relationship with Jensen Huang helped facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese firms since 2023, about 240,000 H100, H200 and some A100 processors. The report does not say that Jensen Huang knew of or approved any of this. Reuters said it could not independently verify the report.
Is Jensen Huang still CEO of Nvidia?
Yes. Nvidia’s board said it has confidence in Huang and his leadership team, and the company has stated that he will remain chief executive while the investigation proceeds. Analysts put the chance of his removal at roughly 15 percent, according to Dan Ives of Yorkville Ives & Co.
What happens next for Nvidia?
Nvidia reports third-quarter results on November 17. Huang has been asked to attend a closed-door briefing with three House committee chairs on November 18, and he has until Wednesday to reply. The board’s independent investigation is expected to take four to six weeks.
Sources
- Reuters, “Nvidia heads for $400 billion two-day wipeout as CEO affair fallout deepens,” November 10, 2026
- Reuters, “Trump says Nvidia CEO told him he did not know woman linked to him was spy,” November 9, 2026
- Sovereign Magazine, “Nvidia Stock Falls for a Second Day After China Chip Report,” November 10, 2026
- Finnhub market data, NVDA quote, November 10, 2026
- The Information, chip-shipment report, November 10, 2026 (as reported by Reuters and Sovereign Magazine; Reuters said it could not independently verify the report)
