Nvidia stock falls 3%, extending its decline following a report that an alleged Chinese spy linked to Nvidia’s CEO helped $7.5 billion in chip shipments to China.
Nvidia (NVDA) stock extended its decline on Tuesday, falling more than 3% after falling 4% in the previous session. The stock has come under pressure amid heavy market selling and growing concerns about increased scrutiny of the chipmaker following CEO Jensen Huang’s admission in a case allegedly involving a woman suspected of being a Chinese spy.
The review could focus on Megaspeed, the Singapore-based company where Alice Huang previously worked, and whether it helped divert restricted Nvidia chips to China. The Information reported Tuesday that at least $7.5 billion worth of Nvidia hardware has been shipped to Chinese companies through a network linked to Alice Huang since 2023, citing two people familiar with the matter.
On Monday, U.S. House Democratic Leader Hakeem Jeffries said Congress needs more answers on the issue, adding that there are “real concerns that need to be addressed when it comes to the Nvidia situation.”
President Trump, meanwhile, told reporters that the FBI was investigating Huang’s relationship, while expressing support for the Nvidia CEO.
“We will look into it,” Trump said. “I know the FBI is looking into it for something else, and I think they’ll be in good shape.”
169.11 -9.56 (-5.35%)
At 11:18:40 a.m. EST. Open market.
The broader semiconductor sector held up Tuesday despite a broader market selloff after higher-than-expected inflation in October reinforced expectations of a rate hike next month.
Shares of rival AMD (AMD) rose 4%, extending Monday’s gains. Broadcom (AVGO) also gained 4%, while Intel (INTC) was little changed.
Taiwan Semiconductor Manufacturing Company (TSM), which makes Nvidia chips, rose, while semiconductor equipment maker ASML (ASML) also rose slightly.
Storage maker Sandisk (SNDK) and memory chip makers Micron Technology (MU) and SK Hynix (SKHY) were little changed.
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