Nvidia Shares Fall 4.8% as Huang Investigation Raises CEO Succession Questions

Nvidia shares fell 4.8% in US trading on Monday as investors weighed an independent board investigation involving CEO Jensen Huang. The decline was larger in Frankfurt, where shares fell more than 6%. Wall Street analysts raised a question rarely asked about the AI chipmaker: what would happen to Nvidia if Huang could not remain CEO.

CNBC reported a 4.8% premarket decline at 09:05 GMT. Reuters reported a 4.5% loss in its 10:10 GMT market snapshot, and CNBC's 11:04 GMT update showed Frankfurt-traded shares more than 6% lower. Bloomberg separately reported a decline of about 6% in early trading.

The losses deepened after the US opening bell. At 11:51 a.m. ET, Nvidia traded at $176.41, down 5.48% from Friday's close of $186.64, according to StockAnalysis market data. The shares opened at $173.07 and reached an intraday low of $170.24 before recovering part of the drop.

The move was concentrated in Nvidia. Other US chipmakers, including Intel, Marvell, Qualcomm and Arm, were down more than 1% in premarket trading, while Asian technology shares recovered across the region. The pattern suggested investors were initially treating the developments as a company-specific governance concern, not a broader threat to semiconductor demand.

Trump calls Huang an honorable guy

The selloff followed weekend reports by The New York Times and the Financial Times. Citing US intelligence sources, the outlets said a foreign intelligence effort allegedly involved a business executive with whom Huang acknowledged having an affair. Nvidia's board announced an independent investigation and said it had no reason to believe national security or company secrets had been compromised. No public findings have established the espionage allegations.

US President Donald Trump defended Huang on Sunday, praising his contribution to the country while saying he had not discussed the allegations with the Nvidia chief executive.

"I think he's an honorable guy. I think he probably has an excuse for it. You have to hear it," Trump told reporters. He also said Huang had "done an amazing job for our country."

Trump's comments give Huang public support at a sensitive moment. They do not resolve the questions facing Nvidia's board or the concerns investors have raised about leadership continuity.

Analysts focus on Nvidia's reliance on Huang

Dan Ives of Yorkville Ives & Co. described the episode as a "black eye moment" for Huang. He warned it could trigger multiple congressional inquiries and leave an overhang on Nvidia shares.

"The clear worry is, does Jensen stay on as CEO?" Ives said. He acknowledged that the Street would probably expect Huang to stay in the role, but he argued the board investigation creates uncertainty. He also called talk of replacing Huang "comedy."

Joachim Klement, investment strategist at Panmure Liberum, took a more contained view, saying the impact "is currently contained to Nvidia." He warned, however, that the consequences could spread to other semiconductor companies if Huang's position became endangered and Nvidia reduced its support for businesses in Asia or the United States.

Ben Emons of Fed Watch Advisors also raised the succession question. "Every high-profile company carries key-person risk, and Nvidia is no exception," he said. He added that the initial handling of the situation and later disclosures could weigh on investor confidence.

The assessments point to two separate risks. The first is the immediate uncertainty over Huang's leadership. The second is whether a longer investigation adds regulatory and operational pressure on a company whose founder remains closely tied to its strategy.

Beijing rejects the espionage allegations

China's Foreign Ministry rejected the allegations on Monday. Spokesperson Guo Jiakun said the government considered the claim unsupported and politically motivated.

"The 'Chinese spy' allegation is purely unsubstantiated and directed at smearing China," Guo said at the ministry's regular press conference.

Beijing's response adds a geopolitical dimension, given Nvidia's position in the US-China semiconductor competition and Huang's longstanding efforts to keep access to Chinese customers. The investigation could draw further scrutiny of the company's relationships, information-security procedures and exposure to export-control restrictions, although no wrongdoing by Nvidia or Huang has been established.

Three Republican House committee chairs have asked for a closed-door briefing with Huang on November 18, according to FinanceFeeds reporting, with a response or alternative date requested by November 11.

Nvidia's next scheduled financial release is its third-quarter fiscal 2027 results on November 17. The company confirmed its earnings conference call will begin at 2 p.m. Pacific Time, or 5 p.m. Eastern Time. The results will show whether the controversy has affected the company's operating outlook, although the board investigation may still be unresolved by then.