Nvidia’s board has hired a New York-based law firm Wachtell, Lipton, Rosen & Katz to investigate CEO Jensen Huang, as shares in the chipmaker fell for a second straight session after Huang admitted to an affair with a woman US intelligence officials believe was passing information to Beijing.
Nvidia shares closed at $168.80 on Tuesday, down 5.53 per cent from the previous close of $178.67, for a market capitalisation of about $4.07 trillion, according to IANS. The stock had already fallen more than 4 per cent on Monday, media outlets reported. Microsoft briefly overtook Nvidia as the world’s second most valuable listed company during Tuesday’s trading, the first time since June 2025, according to Reuters.
Board hires Wachtell Lipton and Joon Kim
On Tuesday, Nvidia’s independent directors said they had retained Joon H. Kim, a former acting US Attorney for the Southern District of New York, and his firm Wachtell, Lipton, Rosen & Katz to conduct “a thorough and independent investigation.”
The board first announced the probe on Sunday. It said a committee of independent directors, assisted by outside counsel, would oversee it. The board added that it has “no reason to believe that either national security or NVIDIA secrets were compromised.” Nvidia has said Huang supports the review and has committed to cooperating with it. The board has not said when the investigation is expected to finish.
Wachtell, one of the renowned firms for counselling executives is known for its navigation of complex cases in America. He is set to advise the board through the investigation with the inquiry being lead by former acting US Attorney of the Southern District of New York according to an official statement.
What Huang told employees
In an email to staff on Sunday, Huang wrote: “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did.” He did not name the woman in the email, according to the Korea JoongAng Daily.
As per media reports on 29 October Alice Huang, also known as Huang Le, is a Chinese businesswoman who had a close relationship with Jensen Huang. US intelligence officials believe she was passing information to Beijing, another source said. She is a Singapore-based data centre executive who worked at Megaspeed, a customer of Nvidia media outlets claim.
FBI probe and political pressure
The FBI is conducting its own investigation, and US President Donald Trump said this week that it is under way. In another report, allegations also emerged on Tuesday that the relationship aided at least $7.5 billion in Nvidia chip shipments to China.
Reportedly, Secretary of State Marco Rubio briefed Trump aboard Air Force One in May, en route to China, on US intelligence indicating Huang was involved with a woman believed to be a Chinese spy. Senate Democratic leader Chuck Schumer said Congress must have a full accounting of Trump’s defence of Huang. He also urged lawmakers to quickly approve new restrictions on US chip exports to China.
Questions over Huang’s future
Huang, 63, co-founded Nvidia in 1993. He is not chairman of the board but one of 11 directors, and the company has no designated chair. The board has said it has “confidence in Jensen.” Several analysts said the probe could lead to governance changes, including a transition contingency plan.
Nvidia spokesperson John Rizzo said in a statement that Huang “is committed to continuing to lead NVIDIA as CEO without interruption.”