Nvidia shares saw a slight uptick in premarket trading on Tuesday, as investors assessed the potential consequences of CEO Jensen Huang's reported affair with an alleged Chinese spy. The controversy erupted after Huang admitted in an email to staff that he had been unfaithful to his wife and acknowledged failing in his responsibilities as CEO.
The affair involved Alice Huang, an executive at Megaspeed, a customer of Nvidia. The New York Times reported on October 29 that U.S. officials had identified her as a Chinese intelligence asset, potentially funneling information to Beijing and directing advanced Nvidia A.I. chips to China. U.S. President Donald Trump confirmed on Monday that the FBI is investigating the matter.
Trump stated that he had been aware of the situation for some time but had not delved deeply into it. He expressed confidence that Huang would be in good shape, noting that the FBI is already looking into related issues. As of 4:40 a.m. ET, Nvidia's stock was trading 1.8% higher, following a more than 4% drop on Monday.