Nasdaq defies Nvidia impact as Huang faces espionage affair probe

Hello, this is Leonie Kidd with today’s edition of Morning Squawk.

Trouble had been brewing, but over the weekend the story broke that Nvidia CEO Jensen Huang – the so-called ‘torchbearer of AI’ – has been having an affair with a woman that U.S. intelligence believes to be a Chinese spy. 

The news has sent shockwaves through the markets, with investors scrambling to assess the potential fallout for the AI industry more broadly.

Nvidia CEO Jensen Huang has issued an apology to his family, the company and investors after admitting to an affair with a woman who is alleged to be a Chinese spy. 

The stock is under heavy selling pressure in premarket trading, currently down over 5%  and lower by over 6% in Frankfurt. 

What we know so far: 

• Jensen Huang has admitted to an extramarital affair. 
• U.S. intelligence services have reportedly expressed concern that the woman, Alice Huang, has been passing information to Beijing. 
• Alice Huang works for Megaspeed, a Singapore-based cloud company that is an Nvidia customer. 
• Megaspeed has been accused of helping restricted Chinese companies acquire AI chips. 
• The Board of Nvidia has opened an investigation into the allegations.
• China’s Foreign Ministry has said the “so-called Chinese spy narrative is completely unsubstantiated.”  
• President Donald Trump reacted to the news, saying, “I think he’s an…