Key Notes
- The Information alleges a business network linked to Alice Huang facilitated at least $7.5 billion in Nvidia chip shipments to China; Reuters could not independently verify the account.
- Lawmakers push tighter export controls as Nvidia’s independent directors retain Joon Kim and Wachtell to investigate.
- NVDA closes November 10 down 5.47% at $168.89, about 31% below its October intraday peak.
Nvidia (Nasdaq: NVDA) faced new pressure Tuesday after a report alleged that a business network linked to Alice Huang helped arrange at least $7.5 billion in chip shipments to Chinese companies. US lawmakers renewed calls for tighter export controls, while independent directors appointed outside investigators to examine the controversy surrounding chief executive Jensen Huang.
The shares closed November 10 at $168.89, down 5.47%, extending Monday’s decline. The selloff has combined concerns about the company’s leadership and export compliance with a wider retreat in AI stocks and renewed expectations of Federal Reserve rate increases.
Report Describes a Network Behind Chip Shipments
Reuters reported that The Information, citing two people who know Alice Huang, alleged her relationship with Jensen Huang helped facilitate the shipments. Reuters said it could not independently verify the account and that Nvidia did not immediately respond to its request for comment.
The investigation described roughly 240,000 processors, mainly H100 and H200 chips, moving into China through a network of businesses. Its findings, summarized by Tom’s Hardware, linked the network to Shanghai Century Litong and Singapore-based Megaspeed.
Shanghai Century Litong reportedly supplied computing capacity to Alibaba (NYSE: BABA), Tencent (HKEX: 0700) and smaller AI laboratories.
Congress Presses for Tighter Export Controls
Senate Democratic Leader Chuck Schumer urged lawmakers to pass three bills: the AI Overwatch Act, giving Congress more authority over advanced-chip exports; the Chip Security Act, aimed at tracking chips to combat diversion; and the MATCH Act, pressing allies to restrict chipmaking-equipment sales to China.
Schumer also criticized President Donald Trump’s defense of Huang and pointed to Nvidia’s reported $25 million contribution to the White House ballroom. Republican House China Committee Chairman John Moolenaar separately called for chip restrictions in the annual defense bill, showing that the pressure extends beyond Democrats.
Trump has expressed support for Huang and said the executive told him he did not know the woman was an alleged spy. China has rejected the allegations.
Megaspeed Inquiry Raises Separate Compliance Questions
The shipment estimate adds to scrutiny of the Megaspeed inquiry. The New York Times reported Monday that Commerce’s investigation stopped and the case moved to the Justice Department after Nvidia contacted officials.
Bloomberg separately reported a 50,000-chip discrepancy in Nvidia’s accounting to US officials. Nvidia said additional warehouse checks located the equipment. That inventory dispute is distinct from The Information’s estimate of chips allegedly moved into China.
Nvidia says it prohibited sales and shipments to Megaspeed in June 2025, with some subsequent parts and replacements authorized by Commerce. Megaspeed denies illegal chip transfers. A December 2025 statement still on its website says inspections found no evidence of violations.
Board Hires Investigators as Stock Losses Deepen
Nvidia’s independent directors said Tuesday they had retained former acting US Attorney Joon H. Kim and Wachtell, Lipton, Rosen & Katz. In announcing the inquiry on November 8, the board expressed confidence in Huang and said it had no reason to believe national security or company secrets had been compromised.
Huang’s participation in Trump’s delegation to next week’s APEC summit in Shenzhen is uncertain, the South China Morning Post reported, according to Reuters.
Tuesday’s closing price left Nvidia about 31% below its October 6 intraday high of $243.37. Much of that decline preceded Huang’s weekend admission of an affair, during a broader repricing of AI companies.
Nvidia’s next scheduled earnings report is November 17. Investors will then get a fresh account of chip demand and the financial outlook as lawmakers and the board pursue their separate inquiries.
