TLDR
- Nvidia (NVDA) stock closed at $178.67 on Monday, down 4.27%.
- A proposed class action was filed against Nvidia and CEO Jensen Huang in San Jose, California.
- It accuses them of hiding Huang’s alleged ties to a suspected Chinese spy.
- The suit also questions how closely Nvidia tracks where its AI chips end up.
- Nvidia has not responded to requests for comment.
Nvidia (NVDA) stock closed at $178.67 on Monday, down $7.97 or 4.27%. The drop erased about $190 billion in market value.
Five minutes after the closing bell, a proposed class action landed in federal court in San Jose, California. It names Nvidia and CEO Jensen Huang as defendants.
The suit says investors were misled about Huang’s alleged ties to a suspected Chinese spy. Rosen Law Firm filed it for investors led by Mark Kistenmacher.
They are seeking unspecified damages. Nvidia did not immediately respond to a request for comment.
How the timeline unfolded
It started last month, when The New York Times reported on the alleged relationship. The paper said US authorities had concluded Alice Huang was a Chinese intelligence asset.
Alice Huang is a former executive of Singapore-based Megaspeed. Reuters notes she is not related to the CEO.
Jensen Huang later told Nvidia employees he had been unfaithful to his wife. He did not share details of the alleged relationship.
On Sunday, Nvidia announced a probe into the matter. The stock fell the next day, and the lawsuit followed within minutes of the close.
Reuters also obtained CTI video footage of a May 22, 2025, dinner in Taipei. It shows a woman Reuters identified as Alice Huang, after comparing a separate photograph, sitting with Huang at a restaurant.
What the complaint alleges
The filing says Nvidia and Huang did not disclose that the matter raised national security concerns. It argues those concerns threaten the company’s reputation and future business.
It also claims the silence kept the stock price artificially high. That could violate federal securities laws, according to the complaint.
The suit says the drop could affect “hundreds or thousands” of investors. It says the plaintiff and other class members suffered losses and damages.
The complaint also points to Nvidia’s own probe. It says the review raises questions about how closely the company tracks where its AI chips end up.
It adds that American export laws could be sidestepped too easily. These are allegations, and Nvidia has not answered them publicly.
Reuters notes that investor lawsuits after sudden price drops are common. Huang is also facing new scrutiny in Washington over his involvement with Alice Huang.
Nvidia, valued near $4.3 trillion, is the world’s most valuable chipmaker. The company has not yet commented on the lawsuit.
