Nvidia Faces Class Action Suit Over Huang Allegations; Senator Seeks Probe, Analyst Puts CEO Exit Odds At 15% Yuvraj Malik Mon, November 9, 2026 at 9:44 PM EST 5 min read NVDA -4.05% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Cathie Wood's ARK Invest purchased nearly $17 million shares of Nvidia on Monday.
Delaware senator Chris Coons called for a congressional investigation into Huang's alleged affair on national security grounds.
In a Stocktwits poll, at least 57% of retail traders said they were buying the dip.
Nvidia Corp (NVDA) is facing mounting legal and political scrutiny over allegations involving CEO Jensen Huang and his reported links to Megaspeed, adding a fresh layer of concern for investors in the AI chip giant.
A class action lawsuit filed on Monday, calls for a congressional investigation and questions over Huang's future have put the leadership risk in focus, with one Wall Street analyst estimating a 15% chance that Huang could lose his CEO post. This comes even as prominent investors such as Cathie Wood and Dan Niles moved to buy the dip.
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Nvidia shares ended 4.3% lower on Monday, although they gained 1% in overnight trading.
"The Street now waits for the Board investigation on Jensen's future at Nvidia. Right now Street factoring in ~15% chance Jensen gone from Nvidia, 85% he stays as CEO," Yorkville Ives partner Dan Ives said in an X post.
In a follow-on post, he said investors were "laser focused" what is next for Nvidia and Huang.
CNBC's Jim Cramer seconded the view, saying that investors might need to prepare for a future Nvidia without Huang.
"Given the facts of the story, which seem to get worse with each update, we are going to have to consider owning shares in a Jensen-less Nvidia," the "Mad Money" host said. "If that is the case, you can no longer be bound by our 'own it, don't trade it' mantra, which has been the default view of the CNBC Investing Club."
Referring to the NYT report, Ryan Fedasiuk, a senior fellow at Foundation for American Innovation, said Nvidia's involvement in the Megaspeed investigation raises serious red flags.
"Any independent investigation into Mr. Huang's personal affair must get to the bottom of whether Nvidia's efforts to protect Megaspeed were ultimately influenced by that relationship," Fedasiuk said in an X post.
"I am not an investor, but at first look, this would appear to be a gross violation of Mr. Huang's fiduciary responsibility as CEO—and a textbook example of (FAILED!) attempted political corruption by one of America's largest tech companies."
One challenge for Jensen is explaining why he pushed to sell to Megaspeed despite a substantial backlog of chip orders, Yasheng Huang, an international management at the MIT Sloan School of Management, said in an X post.
"He could have sold his chips to these customers easily and as lucratively rather than getting himself into this complicated situation."
On Monday, Rosen Law Firm filed a class action lawsuit alleging that Nvidia and Jensen Huang failed to disclose or misled investors regarding Jensen's affair with Alice, lied about it when asked, raised national security concerns, and caused a subsequent loss of Nvidia's reputation.
Some lawmakers, such as Delaware senator Chris Coons, are calling for a congressional investigation on national security grounds, even as new details emerge of the links between Nvidia and Megaspeed, the firm led by the alleged spy.
Last year, a Commerce Department investigation into Megaspeed for allegedly smuggling Nvidia chips to China was transferred to the Justice Department and ultimately suspended after an interaction between Nvidia and a top Commerce Department official, The New York Times reported.
Cathie Wood's ARK Investment Management purchases 90,443 shares of Nvidia, worth nearly $17 million, on Monday. The investment firm trimmed its holdings in Palantir Technologies Inc. (PLTR), Tempus AI (TEM), Block, Inc and (XYZ).
Hedge fund manager Dan Niles also started a position in Nvidia, saying that NVDA's 12-times forward stock to earnings multiple is an attractive entry point.
NVDA was among the top trending stocks at the time of writing, with the retail sentiment for the ticker climbing multiple points higher in the 'extremely bullish' zone.
At least 57% of the traders who voted in an ongoing Stocktwits poll said they are buying the dip in NVDA after the company announced the investigation into Huang's affair.
Fifteen percent said they were trimming their position, while an equal share said they were waiting for the investigation results before deciding what they thought of the stock.
"$NVDA Good luck shorts. You believe that A multi trillion dollar company is going to get crushed over a soap opera. There was no spying," said a trader.
After Monday's drop, Nvidia shares slid into red for 2026 and are down 4%.
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Yuvraj Malik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.
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