Nvidia CEO Huang admits to affair; shares drop as board launches investigation

  Nvidia Chief Executive Jensen Huang apologized to employees after admitting to an affair with businesswoman Alice Huang, whom U.S. intelligence suspects is a Chinese spy. Huang told staff he was "deeply sorry", as the chipmaker’s board opens an independent investigation.

Shares of the chipmaker fell over 4% in premarket trade on Monday. 

"I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," Huang wrote in the memo. He said "his family deserved his honesty and loyalty and that he had let them down," according to a memo released publicly on Sunday. 

The disclosure has drawn attention to the personal life of the high-profile executive, who has become one of the most influential figures in the global technology industry through Nvidia’s dominance in artificial intelligence chips.

"The NVIDIA Board is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort," the company said in a statement Sunday.

“Today’s news will not slow NVIDIA. Jensen is committed to continuing to lead NVIDIA as CEO without interruption," Nvidia spokesperson told Investing.com in an emailed statement.

The probe follows an October New York Times report alleging Huang had a close relationship with the Chinese businesswoman who passed information to Beijing. Senior Republican lawmakers in the U.S. House of Representatives have called on Huang to brief Congress this month over the allegations.

Nvidia said its board had no reason to believe that U.S. national security or the company’s confidential information had been compromised. Huang supports the investigation and has committed to cooperating with the review, the company said.

"For investors, key issues are likely potential governance implications, increased regulatory scrutiny and export-control compliance of the flow of H200 chips into China and routed through other intermediaries, and long-term impact on leadership stability," Citi analysts said.

Separately, Bernstein analysts led by Stacy Rasgon said they "find some of the espionage rationale allegations here to be (so far) more form than substance, though a (very) bad look."

Huang has led Nvidia since co-founding the company in 1993, turning it from a graphics-chip maker into the world’s leading supplier of processors used to develop and run artificial intelligence systems.

Trump calls Huang ’honorable,’ says yet to discuss Chinese scandal 

 U.S. President Donald Trump on Sunday evening praised Huang for his contributions to the U.S. AI industry, and said he was yet to discuss the scandal with the Nvidia CEO. 

"He’s a fine person… I think he’s an honorable guy,” Trump told reporters, adding that Huang has done "an amazing job" for the country. 

"I have not spoken to him about it," Trump said. 

The Nvidia CEO developed a close relationship with Trump over the past two years, with the president championing Huang for Nvidia’s progress in the artificial intelligence industry. 

Huang has consistently accompanied Trump on his state visits, most notably China earlier this year and the UK in 2025. 

Trump, when questioned over whether he would take Huang with him on a trip to Asia next week, said “I don’t know, but I’d certainly take him.” 

Vahid Karaahmetovic contributed to this report.