Nvidia’s shares fell about 8% in after-hours trading as the chipmaker’s board met amid growing pressure over CEO Jensen Huang’s ties with China. Huang’s potential departure would leave a leadership gap at the roughly $4tn company he co-founded.
US Democratic Senators Elizabeth Warren and Chris Coons have formally asked the Trump administration to preserve all documents related to Nvidia’s chip exports to China and Huang’s alleged relationship with a Chinese intelligence asset. The Wall Street Journal reported the senators sent a letter to Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio, and White House Chief of Staff Stephen Miller.
The letter reportedly requests a full record of communications and transactions that could shed light on the scale and nature of Nvidia’s dealings with China, as well as any intelligence concerns linked to Huang. The WSJ’s account did not include details confirming the existence of the alleged relationship, but the senators appear to be pushing for a thorough federal review.
Nvidia’s board meeting comes as the company faces intense scrutiny over its China operations. Huang has led Nvidia since its founding, steering it through a period of rapid growth driven by demand for graphics processing units used in gaming, artificial intelligence, and data centers. The company’s valuation recently approached $4tn, placing it among the world’s most valuable tech firms.
The 8% drop in Nvidia shares reflects investor unease over the uncertainty surrounding Huang’s future and the political risks tied to US-China tensions on technology exports. Nvidia’s business relies heavily on access to Chinese markets and supply chains, which have become flashpoints in broader geopolitical conflicts.
The letter from Warren and Coons is part of a wider push by US lawmakers to scrutinize tech companies’ interactions with China amid fears of technology transfer and espionage. Both senators have been vocal on issues involving Chinese influence and intellectual property security.
Nvidia has not publicly commented on the allegations or the senators’ letter. The company’s board meeting details have not been disclosed. The Wall Street Journal report is the first indication of formal congressional action targeting Huang personally.
The outcome of the board’s deliberations and any federal investigation could have significant implications for Nvidia’s leadership and operations. Huang’s potential exit would be a rare disruption at one of the largest and most influential companies in the semiconductor industry.
As the investigation unfolds, Nvidia’s stock volatility and political scrutiny underscore the fraught landscape for US tech firms operating amid worsening US-China relations. The company’s future now appears uncertain as lawmakers seek answers about its China ties and the personal conduct of its CEO.
According to The Guardian.
