The Alice Huang and Nvidia Bullshit.

 

When I first heard about the Alice Huang story I knew it was bullshit.  But a bullshit story has made Nvidia lose US$1.8 TRILLION in market value since October 2026. 

You only have to remember this one thing : Nvidia still is the world's leading AI chipmaker. Period.

Here is some copy paste:

And Jensen Huang is still the largest individual shareholder in Nvidia. Huang owns 871 million shares (3.58%) in Nvidia. The controversy involving Alice Huang and Nvidia is a combination of alleged espionage (aka bullshit), a personal relationship, Chinese chip-smuggling allegations (more bullshit) and a major corporate governance crisis.

1. Who is Alice Huang?

Alice Huang, also known as Huang Le, is a Chinese businesswoman with a background in banking, investment management and television journalism. She became a senior executive and controlling shareholder of Megaspeed International, a Singapore-based cloud-computing company connected to Nvidia's business in Asia.

She is not related to Jensen Huang, Nvidia's Taiwanese-American co-founder and chief executive.

US intelligence authorities reportedly suspected Alice of having links to China's Ministry of State Security (MSS), China's intelligence agency. However, these allegations have not been independently established. Beijing has rejected them. 

Note the words reportedly, suspected, allegations. Meaning unproven bullshit.

2. What happened between Alice and Jensen Huang?

The controversy intensified after reports emerged that Jensen Huang had an extramarital relationship with Alice.

On 8 November 2026, Jensen acknowledged in an internal message to Nvidia employees that he had been unfaithful to his wife and apologised to his family and colleagues.

The more serious allegation was that Alice had used her relationship with Jensen and her business connections to facilitate access to Nvidia's advanced AI chips.

According to reports by The Information, approximately 240,000 Nvidia chips, including H100, H200 and A100 models, were moved into China through a network of companies. Some of these chips were subject to US export restrictions.

The reported value of shipments facilitated through these connections was at least US$7.5 billion.

These claims have not been independently verified. 

(OSTB:  They were subjected to US export restrictions. Big deal. The Chinese can buy Nvidia chips at any time. Just set up a trading firm in Malaysia, Australia, United Kingdom or Tel Aviv, import the chips and then re export them to China. As though it has not been done before. 

3. Why did this become a national security issue?

The United States restricts exports of advanced Nvidia chips to China because of concerns that they could strengthen China's military and artificial intelligence capabilities.  If the allegations are substantiated, the affair could expose weaknesses in Nvidia's export-control compliance and potentially compromise US national security interests.

(OSTB: Such bullshit. Chinese technology is already more advanced than the United States. Chinese weapons technology is so far superior to the US that the Americans do not even know how far ahead the Chinese have advanced.  No one even knows the name of that three engined Chinese stealth fighter. It is a gigantic machine - as big as a tennis court. No new American jet has been introduced since 2006 - twenty years ago).

4. What happened to Nvidia's share price?

The market reaction was severe.

- 6 October 2026: Nvidia reached an all-time high of approximately US$243.37 per share.
- 9 November: Shares fell 4.3%.
- 10 November: Shares declined another 5.5%, wiping approximately US$430 billion off Nvidia's market capitalisation over two sessions.
- 11 November: Shares fell further in after-hours trading, reaching approximately US$159–160 following reports that the board was considering removing Jensen Huang.
- 12 November: Jensen Huang resigned as CEO. Nvidia shares initially plunged more than 13% but recovered some losses, eventually closing down 4.3%.
By 14 November, Reuters reported that Nvidia shares had fallen more than 30% from their October peak, erasing over US$1.8 trillion in market value. 

The share price lost US$1.8 trillion in market value because the Boss slept with a lady friend?  What about the value of their manufacturing plants? What about the combined value of their thousands of highly skilled engineers and workers?  What about their miraculous computer chips, without which you may not be able to read this (I use the AI everyday). What about their annual sales of US$130 billion and profits of US$73 billion?

All that has less value than a tryst with a muy guapa Chinese woman? 

5. What happens next?

Nvidia's CFO, Colette Kress, has taken over as interim CEO while the board searches for a permanent replacement.

The company faces three major challenges:

1. Leadership: Jensen Huang founded Nvidia in 1993 and has been the public face of its extraordinary growth. Finding a successor will not be easy.

2. US national security investigation: Authorities must establish whether export restrictions were circumvented and whether sensitive information was compromised.

(OSTB: Just give them a carve out. If they can reverse the sanctions against Russia, whats the big deal about selling some chips to China?)

3. Investor confidence: Investors are concerned about corporate governance, possible regulatory consequences and Nvidia's dependence on its founder.

It is important to distinguish allegations from established facts. There is not yet conclusive public evidence that Alice Huang was a Chinese spy or that Nvidia's confidential technology was compromised.

The biggest immediate damage is the departure of the man who built Nvidia into a multi-trillion-dollar company. But Jensen Huang still holds 871 million shares in Nvidia. So it is far, far from game over.

Its a good time to buy Nvidia.

The views expressed are those of the writer and do not necessarily reflect those of  MMKtT