Nvidia shares extended losses on Tuesday, putting the chip giant on track to shed about $400 billion in market value over two sessions as concerns mounted over the fallout from CEO Jensen Huang's affair with a Chinese businesswoman alleged to be a spy for Beijing.
The CEO's relationship with Alice Huang helped facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese firms, The Information reported on Tuesday, citing two people who know her. Alice Huang and Jensen Huang are not related.
The allegations have intensified scrutiny of Nvidia's governance, export-control compliance and reliance on Huang's leadership, adding to investor unease over whether massive spending on artificial intelligence infrastructure will deliver adequate returns.
Nvidia shares fell more than 5% after losing 4.3% on Monday, when the company shed $192.08 billion in market value. Tuesday’s decline put another roughly $221 billion at risk if losses hold.
"The investment debate is whether this remains company-specific or triggers restrictions and disruption across AI infrastructure," Bank of America analysts wrote in a note. "We would not equate allegations with proven business damage."