Nvidia's China business faces scrutiny amid executive affair and network ties

Nvidia's CEO Jensen Huang has acknowledged an affair with Alice Huang, a former executive at Megaspeed, a company linked to a network with Chinese origins, according to livetradingnews.com.

US intelligence reportedly believes Alice Huang was recruited by China's Ministry of State Security, though China denies these claims. Nvidia's board has been informed of the affair and its potential implications.

Despite the controversy, Nvidia's business in China remains substantial, generating $7.88 billion in revenue in the quarter ending July 26, 2026, and $18.5 billion over the preceding 12 months. The latest quarter's rate suggests annual China revenue of $31.5 billion.

Nvidia's internal checks found that Megaspeed operates outside China, and while Bloomberg reported a shortage of 50,000 chips, Nvidia stated that additional warehouses held these chips. Nvidia's legal team has engaged with regulators regarding questioning in Singapore.

The network surrounding Alice Huang includes entities with Chinese government ownership and financial ties, such as 7Road, Alibaba's Singapore unit, and Kang Wei, a director at a state-controlled Chinese bank.

Following these revelations, Nvidia's market value dropped by about $428 billion over two trading sessions ending November 10, 2026. Nvidia plans to release third-quarter results on November 17, which will include China revenue details, followed by a closed-door briefing to House chairmen on November 18.