Nvidia shares fell about 5.5% on Tuesday, a second straight day of losses that has wiped roughly $430 billion from the chipmaker's market value, according to CNBC and Decrypt, citing Yahoo Finance data. The stock had already dropped 4.3% on Monday, leaving it down about 9.5% across the two sessions and erasing all of its gains for 2026.
The sell-off followed the company's announcement on Sunday that its board had opened an independent investigation after reports that founder and chief executive Jensen Huang had been the target of a foreign intelligence effort, according to CNBC. The board has retained Wachtell Lipton, with former federal prosecutor Joon Kim leading the review, which centres on whether foreign intelligence services gained access to the company and whether corporate secrets were exposed.
Huang admitted in a memo to employees on Sunday that he had an extramarital affair with a businesswoman at a Singapore-based data-centre company, without naming her, and apologised for the hurt caused to his family, according to the reporting. US intelligence officials are reported to be examining the woman for possible links to Chinese intelligence agencies. China has denied the allegations, Reuters said it could not independently verify them, and no criminal charges have been announced against either person.
Nvidia said it has found no basis to conclude that national security or confidential company information was compromised, and Huang continues as chief executive, according to the reporting. The Rosen Law Firm said it has filed a shareholder class-action lawsuit in federal court in San Jose, California, against Huang and Nvidia, and Senator Kevin Cramer, a North Dakota Republican, called on Huang to step down, telling Politico the risk of extortion was too great.
Pressure is also building in Washington. House Foreign Affairs Committee Chairman Brian Mast said he was prepared to subpoena Huang unless he responds by Wednesday to a request for a closed-door briefing on 18 November, the day after Nvidia reports quarterly earnings, according to the reporting. Shares were up about 3.8% in premarket trading early on Wednesday, according to Decrypt, but the board's review is expected to take four to six weeks, analysts cited by CNBC said.