Taylor Riggs and Adam Johnson discuss the Nvidia board’s investigation into a Chinese espionage case after Jensen Huang admits to an affair, analyzing the potential market impact and stock movement.
China on Monday rejected allegations of a spying operation targeting Nvidia CEO Jensen Huang, dismissing reports of a suspected Chinese intelligence plot as a smear campaign against Beijing.
“The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear,” Chinese Foreign Ministry spokesperson Guo Jiakun told reporters during a regular news briefing in Beijing on Monday.
The denial comes after Nvidia announced an independent investigation into reports that Huang had been the “target of a foreign intelligence effort.”
NVIDIA SHARES FALL AFTER INVESTIGATION INTO CEO’S RELATIONSHIP WITH ALLEGED CHINESE SPY
Nvidia founder and CEO Jensen Huang speaks at the annual Consumer Electronics Show on January 6, 2026. (Patrick T. Fallon/AFP via Getty Images / Getty Images)
The New York Times previously reported that U.S. intelligence officials determined Huang had developed a close relationship with Alice Huang, an unrelated Chinese business executive at Singapore-based company Megaspeed whom U.S. authorities suspect of gathering information for Beijing.
Huang acknowledged an extramarital affair in a letter to Nvidia employees Sunday but did not identify the woman involved. He pledged to cooperate with the company’s investigation and emphasized his commitment to U.S. national security.
Nvidia CEO Jensen Huang speaks during the G20 Innovation Ministerial on Sept. 2, 2026, in Chapel Hill, North Carolina. (Sean Rayford/Getty Images / Getty Images)
HOUSE REPUBLICANS DEMAND ANSWERS FROM NVIDIA CEO OVER REPORTED CHINESE SPY TIES
Beijing has also pushed back against the broader reporting, with some Chinese state media suggesting the allegations were intended to undermine U.S.-China relations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 177.93 | -8.71 | -4.67% |
“Whenever China-US relations begin to improve, there are often those firing shots from the shadows,” China’s state-owned Global Times wrote.
Nvidia CEO Jensen Huang speaks during a press conference in Tokyo on July 16, 2026. (Tomohiro Ohsumi/Getty Images / Getty Images)
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Nvidia’s board has said it has “no reason to believe” that national security or company secrets were compromised.
Reuters contributed to this report.
