Nvidia and CEO Jensen Huang face class action lawsuit over undisclosed security risk

Nvidia and its CEO Jensen Huang face a class action lawsuit in California, with shareholders alleging fraud for failing to disclose a security risk tied to Huang's affair with a woman suspected of being a Chinese spy. The scandal has sent Nvidia's stock down sharply, erasing hundreds of billions in market value. President Trump has publicly defended Huang, saying the FBI is investigating but that Huang was unaware of the woman's alleged role. The affair involved a former manager at Megaspeed, a Singapore-based cloud infrastructure firm under scrutiny for potentially funneling Nvidia AI chips to China, intensifying U.S.-China semiconductor export tensions. Nvidia's board has launched an investigation into the relationship, which Huang supports, and he will remain CEO during the probe. The scandal adds to investor fears about the AI sector's stability, coming amid broader market uncertainty following the midterm elections.