Nvidia sheds $430 billion in two days as Microsoft briefly passes it in market value
Photo: NDA NewsNvidia lost about $430 billion in market value in two trading sessions as new reports tied chief executive Jensen Huang's relationship with a woman alleged to be a Chinese spy to billions of dollars in chip shipments to China — and Microsoft briefly passed the chipmaker as the world's second-most valuable company.
Nvidia shares fell 5.5% on Tuesday to close at $168.89, after dropping 4.3% on Monday to $178.67. The stock is now down 9.5% since Friday's close of $186.64, erasing all of its gains for the year, and about 30% below its record close in early October. Roughly $1.7 trillion in market value has evaporated since the shares peaked.
During Tuesday's session, Microsoft overtook Nvidia as the world's second-most valuable public company for the first time since June 2025, Reuters reported. Microsoft shares were down 0.4% at $543.25 while Nvidia slid more than 6% to around $167.11. By the closing bell, Nvidia had edged back ahead, with a market value of about $4.1 trillion. Apple remains the world's most valuable company.
The selloff deepened on Tuesday after The Information reported that Huang's relationship with Alice Huang — no relation to the chief executive — had helped facilitate at least $7.5 billion in Nvidia chip shipments to Chinese firms since 2023, including about 240,000 H100, H200 and some A100 processors, some of which ultimately served Alibaba, Tencent and smaller Chinese artificial intelligence labs. Reuters said it could not independently verify the report.
Alice Huang, also known as Huang Le, is a former executive at Singapore-based Megaspeed International, a major buyer of Nvidia chips. U.S. intelligence agencies have determined she is a Chinese intelligence asset, The New York Times reported last month. China's foreign ministry has called the spy accusations "groundless."
The controversy escalated on several fronts on Tuesday. The New York Times reported that Secretary of State Marco Rubio had briefed President Donald Trump aboard Air Force One en route to China in May about U.S. intelligence indicating Huang was involved with a woman believed to be a Chinese spy — the second time in seven months Trump had been told, according to the newspaper. Trump said Monday he had spoken with Huang, who told him he had "absolutely no idea" the woman was a spy, and that he believed him. A White House official disputed the Times report.
Senate Democratic Leader Chuck Schumer demanded answers from the administration on Tuesday and called for tighter curbs on chip exports to China. Late Tuesday, Republican Senator Kevin Cramer of North Dakota, a member of the Senate Banking Committee, became the first sitting senator to call on Huang to step down, telling Politico: "The potential for extortion is so tremendous that something as sensitive as Nvidia chips, I just think he's got to go." Former National Economic Council director Larry Kudlow had earlier urged Huang to resign on his Fox Business show.
Nvidia's independent directors said Tuesday they have hired Joon Kim, a partner at Wachtell, Lipton, Rosen & Katz and a former acting U.S. attorney for the Southern District of New York, to lead the board investigation announced on Sunday. The board has said it has no reason to believe U.S. national security or company secrets were compromised. The FBI is separately examining whether Huang, 63, was targeted by a foreign intelligence operation.
Pressure is also building in the House. Foreign Affairs Committee Chairman Brian Mast told ABC News he is prepared to subpoena Huang unless he responds by Wednesday to a request for a closed-door briefing on November 18 about his interactions with Megaspeed and Nvidia's safeguards against espionage. A proposed shareholder class action filed in federal court in San Jose on Monday accuses Nvidia and Huang of misleading investors by failing to disclose potential national security risks linked to the affair.
Huang admitted to employees on Sunday that he had been unfaithful to his wife, and apologized to senior executives at a closed-door meeting on Monday before returning to work at Nvidia's headquarters on Tuesday, CNBC reported. He remains chief executive while the inquiry proceeds.
Beyond the scandal, investors are questioning whether the enormous spending on artificial intelligence infrastructure will deliver returns to match, and whether technology valuations have run too far. The hot October inflation report, which strengthened expectations of a Federal Reserve rate hike in December, added to the pressure on technology stocks on Tuesday.
Nvidia reports third-quarter results on November 17, a day before the proposed congressional briefing. The shares bounced back in premarket trading on Wednesday.
Sources: Reuters, "Nvidia faces deepening scrutiny over China chip ties, CEO affair" (Nov. 11, 2026, full text verified); Reuters, "Microsoft tops Nvidia's market cap for first time since June 2025" (Nov. 10, 2026, full text verified); Reuters, "Senior Republican on US Senate banking panel calls on Nvidia CEO Huang to resign" (Nov. 10, 2026, full text verified); The Times, "Nvidia market loss over scandal reaches $430bn" (Nov. 11, 2026, full text verified); AAP, "Nvidia faces scrutiny over China chip ties and affair" (Nov. 11, 2026, full text verified). Event date verified: November 10-11, 2026 (two-day market rout and Tuesday reports).
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