FBI Opens Probe Into Jensen Huang Spy Case; Nvidia Shares Drop 6 Percent

Nvidia shares fell roughly six percent at the open of trading on the New York Stock Exchange on Monday after US President Donald Trump confirmed the FBI is investigating the affair surrounding Nvidia CEO Jensen Huang and a suspected Chinese spy.

The drop followed earlier losses in the Dax and across Asian markets. What does this change for Nvidia? Analysts at Index-Radar see a potential Huang resignation as a major risk, calling him one of the key figures of the AI boom who has shaped Nvidia like few other chief executives.

What is the FBI actually investigating?

Trump told a press conference at the White House that the FBI (the US federal police) is examining the case. He left open whether the investigations target Huang himself. The chipmaker had already launched its own internal review, led by board members and external investigators, following reports that its chief executive had become the target of foreign espionage activity.

According to media reports, Huang had a relationship with a woman whom US security circles believe was recruited by Chinese intelligence. Huang confirmed the affair in an email to Nvidia employees. The woman officially worked for Megaspeed, a major Nvidia customer. She shares the surname Huang but is not related to the CEO. She was seen at his side as early as 2024, with private photos showing the two together in a bar in Taiwan.

The New York Times reported that the woman in fact served China's top intelligence agency, the MSS, tasked with collecting information about Huang. The MSS is reportedly "many times larger" than the CIA.

How is Trump responding?

US intelligence services had reportedly warned leading government members, including Trump, about the affair beforehand. Trump recently said publicly he was "astonished" by the allegations against Huang.

At the press conference, Trump again backed the Nvidia chief, with whom he has built a close relationship in recent years. Huang denies knowing about the alleged spy's activities.

Trump said he had spoken with Huang and addressed the matter directly: "He said he had no idea that she was a spy, and I really believe him."

Asked whether he would raise the case at his upcoming meeting with Chinese President Xi Jinping, Trump answered simply: "No, I don't think so." The two leaders could meet for the third time this year in a little over a week, on the sidelines of the Apec summit (Asia-Pacific Economic Cooperation forum) in Shenzhen, southern China.

What does Beijing say?

China denies spying on the Nvidia CEO. Foreign Ministry spokesperson Guo Jiakun said in Beijing the claim is unfounded and "nothing but slander against China."

The stakes are high. Nvidia has become one of the world's most valuable companies on the back of the AI boom and sits at the center of the US-China race for technological dominance. The company's most advanced chips are subject to export restrictions to China.