Nvidia is going through a major crisis. The giant of artificial intelligence chips lost about 430 billion dollars in market capitalization on November 9 and 10, 2026. Its CEO Jensen Huang fac
Nvidia is going through a major crisis. The giant of artificial intelligence chips lost about 430 billion dollars in market capitalization on November 9 and 10, 2026. Its CEO Jensen Huang faces calls for resignation after revelations concerning his links with a Chinese businesswoman suspected of espionage. The board of directors is now examining his future, as new accusations complicate the situation.
The drop is brutal. After approaching 5,800 billion dollars in capitalization at the beginning of October, Nvidia is undergoing a new correction on Wall Street. The stock lost 4.3% on Monday, November 9, then 5.5% on Tuesday, ending at 168.89 dollars. In two sessions, about 430 billion dollars in valuation disappeared.
The retreat amounts to nearly 29% compared to the closing peak of 239.24 dollars recorded on October 6. The gains accumulated since the beginning of 2026 have also been erased. The situation became even more complicated on Wednesday. Nvidia rose nearly 3% during the session, before falling more than 8% in after-hours trading. The Wall Street Journal had just revealed that the board of directors was preparing a possible departure of Jensen Huang.
The market value potentially wiped out since the start of the crisis could thus reach about 600 billion dollars if this new decline were confirmed in regular trading. No definitive decision has been announced.
This volatility occurs a few days before the publication of Nvidia’s quarterly results, scheduled for November 17. Investors were mainly waiting for information on IA chip demand and the spending of large data centers. They now must also monitor the future of the leader who founded the company in 1993.
Your 1st cryptos with BinanceThis link uses an affiliate program.The origin of the crisis dates back to revelations concerning Alice Huang, a Chinese businesswoman with no family ties to the Nvidia leader. American intelligence suspects her of having participated in an operation aimed at obtaining sensitive information and facilitating Chinese companies’ access to American technologies.
Jensen Huang acknowledged having had an extramarital relationship with her. This relationship is said to have facilitated the transfer to China of Nvidia chips worth at least 7.5 billion dollars.
These accusations have not been publicly established by a judicial decision. Beijing rejects the espionage suspicions. The case touches a sector already subject to strong restrictions. Washington has been seeking for several years to limit China’s access to the most advanced semiconductors.
Nvidia had notably developed AI chips adapted to American restrictions to maintain its presence in the Chinese market. On November 8, the board announced the opening of an independent investigation.
Nvidia specifies it has no reason to believe that its trade secrets or American national security have been compromised. The company has called on the firm Wachtell, Lipton, Rosen & Katz to assist the investigations.
Jensen Huang publicly apologized to his family and colleagues. He also committed to cooperating with the investigation. But political pressure is mounting. Republican Senator Kevin Cramer demands his resignation, believing this situation could expose the leader to blackmail attempts. Former White House economic advisor Larry Kudlow has also called on Huang to step down.
The new revelations accelerated internal discussions. According to Reuters, Nvidia’s directors were expected to meet Wednesday evening to decide on Jensen Huang’s possible retention.
The board has eleven members, ten of whom are considered independent. A majority can remove the CEO, even without formally established fault. The situation contrasts with the November 8 statement, in which the directors reaffirmed their confidence in Huang.
The New York Times also reported on Wednesday a second alleged extramarital affair, this time with a Nvidia executive. Reuters could not independently verify this information.
The possible departure of the leader would pose a succession problem. Jensen Huang holds about 3.6% of the capital and directly oversees several dozen executives. He has built much of the group’s technological strategy.
Chief Financial Officer Colette Kress appears among those likely to temporarily take charge. No replacement has been officially announced. Markets remain particularly sensitive to this uncertainty. Nvidia occupies an essential place in the artificial intelligence infrastructures used by OpenAI, Microsoft, Meta, and many other companies.
A sudden change in leadership could complicate certain projects, even if the demand for computing power remains high. The group must also respond to Congress’s questions about chip exports to China.
This tension has already caused corrections. In March, new American restrictions on AI chips had caused Nvidia’s stock to fall. This time, investors are waiting for two answers: the conclusions of the independent investigation and the board’s decision on Jensen Huang. His departure remains a possibility, not yet a done deal.
