Nvidia is facing mounting pressure from investors and US lawmakers as scrutiny grows over the movement of its advanced artificial intelligence chips into China. The developments have coincided with a sharp decline in the company’s shares, raising questions about export-control enforcement, corporate governance and the sustainability of AI-related valuations.
Nvidia shares closed at $168.80 on November 10, down 5.5% from the previous close of $178.68. The stock has also fallen from $186.65 on November 6, putting the company at risk of losing approximately $470 billion in market capitalisation over two trading sessions. Its market value stood at around $4.07 trillion, allowing Microsoft to reclaim the position of the world’s second-most valuable company.
US intelligence concerns and restricted chip shipments
According to Axios, US Commerce Secretary Howard Lutnick received a classified intelligence memo concerning Nvidia CEO Jensen Huang’s reported relationship with Alice Huang, a Singapore-based businesswoman whom US officials suspect of having links to China’s Ministry of State Security. The two individuals are not related. The memo reportedly raised concerns that Alice Huang may have been recruited to gather information on Jensen Huang and encourage Nvidia to seek access for its advanced chips in China.
The report said the memo was prepared under Secretary of State Marco Rubio and drew on surveillance and a chip-smuggling investigation involving Alice Huang’s company, Megaspeed. Separately, Bloomberg reported that Chinese AI startup Moonshot AI signed a contract in August to rent 32 servers equipped with Nvidia B300 GPUs in China. Financing documents valued the servers at 432 million yuan. However, Bloomberg could not independently establish whether the required export authorisation had been obtained. Moonshot disputed the documents, saying it had no business relationship with the company involved in the financing. Nvidia said the entities were not its customers.
Reuters also reported that Northwestern Polytechnical University, a Chinese institution with close links to the People’s Liberation Army, purchased two Nvidia H200 chips from a domestic supplier for 874,700 yuan, or approximately $123,000, despite being on a US export blacklist. Procurement records reviewed by Reuters indicated that other Chinese research institutions had also obtained restricted processors or access to computing services powered by them.
Shareholder lawsuit adds to investor concerns
Nvidia’s board has launched an independent investigation, while US lawmakers from both parties have called for further scrutiny. Jensen Huang is expected to face a closed-door congressional briefing next week. The company has said it has no reason to believe its trade secrets or US national security have been compromised.
Separately, Nvidia and Huang are facing a securities class-action lawsuit alleging that statements made on October 9, 2025, misled investors. Shareholder attorney Laurence Rosen said President Donald Trump‘s public support for Huang would not determine the outcome of the case. The central issue, he said, is whether the statements at the centre of the lawsuit misled shareholders.
Nvidia’s next quarterly results, scheduled for November 17, will provide investors with an opportunity to assess chip demand and the company’s business outlook amid the controversy.
Why are Nvidia shares under pressure?
Nvidia shares have declined amid scrutiny over reported links involving CEO Jensen Huang, questions about advanced chip shipments to China, US export-control enforcement and a shareholder lawsuit.
How much market value could Nvidia lose?
The company faces a potential market-capitalisation decline of approximately $470 billion over two trading sessions, according to the live coverage.
Did a Chinese university purchase Nvidia H200 chips?
Reuters reported that Northwestern Polytechnical University purchased two H200 chips from a domestic supplier for approximately $123,000. The university is linked to China‘s defence research establishment.
Has Nvidia confirmed a national security breach?
No. Nvidia has said it has no reason to believe its trade secrets or US national security have been compromised.
When are Nvidia’s next results due?
Nvidia is scheduled to announce its next quarterly results on November 17.
