Nvidia faces $7.5 billion chip scandal after $430 billion wipeout Faizan Farooque Wed, November 11, 2026 at 7:16 AM EST 1 min read NVDA +4.26% 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.
As CEO Jensen Huang and advanced chip exports to China were questioned, Nvidia Corp. (NVDA, Financials) lost $430 billion in market value over two trading sessions.Nvidia shares fell 9.5% as investors considered its leadership, export compliance, and U.S. regulator relations.According to The Information, Chinese businesswoman Alice Huang, who is suspected of having intelligence links to Beijing, helped Chinese firms receive at least $7.5 billion in Nvidia chips.This study linked her business network to 240,000 H100, H200, and A100 processors, including U.S. export-restricted chips. Unable to independently verify the assertions, Reuters claimed.Joon Kim, a former acting U.S. attorney and Wachtell Lipton partner, will oversee Nvidia's probe, according to its independent directors.The board found no evidence of national security or corporate secrets exposure. Huang is cooperating with the review. Additionally, political pressure is rising.Concerned about coercion, Republican Sen. Kevin Cramer asked for Huang's resignation. Senate Democratic Leader Chuck Schumer requested more answers and more advanced chip export restrictions to China.Separately, the FBI is investigating if Huang was targeted by foreign intelligence. The Foreign Ministry of China denies the spying allegations.Huang has led Nvidia's strategy for nearly 30 years and is essential to its connections with consumers and policymakers, making the dispute a challenge.Investors will scrutinize the independent inquiry, legislative action, and regulatory conclusions on Nvidia's chip shipments.
