Espionage affair: Nvidia shares lose value after Jensen Huang's resignation

At the low point of the day, Nvidia shares were below the $150 mark for the first time since mid-2025. They have fallen by almost a third since their previous record high in early October ($243.37).

Jensen Huang resigned as CEO of leading AI chip developer Nvidia on Thursday. An affair with Alice Huang, who is suspected by the US authorities of spying for China, had previously become known. According to US media, he is also said to have had a relationship with a high-ranking Nvidia manager. Jensen Huang admitted to having an affair on November 8th after initial reports about the connection with Alice Huang, but without naming her.

The shares of Nvidia's competitors benefit

Even before Huang's resignation was announced, analysts had reconsidered their stance on the stock. Major investment houses such as Citigroup, JPMorgan and Bank of America significantly lowered their price targets. Huang's resignation could also have far-reaching consequences for the global supply chain in the field of AI, said a stock market expert.

Shares of Nvidia competitors, however, benefited. The semiconductor company AMD gained 5.9 percent and the Broadcom company 5.5 percent in market value. In view of the developments at Nvidia, investors are betting on future market share gains for these two large chip manufacturers.

The espionage case is now spreading further and further within the US government. According to insiders, the White House is discussing a replacement for Trade Secretary Howard Lutnick. An increasing number of parliamentarians are accusing the minister of not adequately controlling the export of AI chips to China. They also criticize the government's refusal to put dozens of Chinese companies on an important trade blacklist. However, a government official said that US President Donald Trump had “full confidence” in the minister.