Nvidia drops 38% as Huang controversy and China chip claims swirl

Three U.S. House committee chairmen have requested a closed-door briefing with Nvidia CEO Jensen Huang, scheduled for November 18, 2026. The session is reportedly set to focus on foreign espionage risks and oversight. Separately, the company's board launched an independent investigation after Huang disclosed an intimate relationship to employees and family, according to reports. Nvidia and Huang were also named in a proposed federal securities class action alleging misleading statements about compliance checks and chip diversion.

The reported allegations center on businesswoman Alice Huang, also referred to as Alice Wang. Questions have been raised about her possible connections to Chinese intelligence and the alleged diversion of advanced Nvidia chips. Megaspeed, described in the reports as a Singapore-based Nvidia customer, has been linked to claims that billions of dollars in chips may have been routed into China, potentially bypassing U.S. export controls. Those claims remain allegations, not established findings.

The market has already voted. Nvidia shares are down roughly 38% from their early-October level of about $243, landing at $150 in early November before clawing back to around $165. The stock is also trading below its 200-day EMA band, with the longer-term bullish trend described as broken.

Traders are watching two edges. A sustained recovery would put $190 and $209 in focus, while a failure at $150 opens the door to $130 and even $115 as potential downside levels.

A post circulating on X went further than the reporting, declaring Huang 'officially out' as CEO and comparing the moment to Steve Jobs' 1985 exit from Apple. That claim does not appear in the underlying reports, which describe an ongoing board investigation and mounting legal and political pressure rather than a leadership change.