Nvidia Jensen Huang Lawsuit Turns on the Chips Megaspeed Moved

Mark Kistenmacher bought Nvidia stock seven times this year, spent about $20,500 in total, and on Monday sued the company and its chief executive for misleading him.

The Nvidia Jensen Huang lawsuit names both the company and its founder as defendants. The complaint runs 17 pages, was filed in federal court in San Jose, California, five minutes after the market closed on Monday, and seeks to represent everyone who bought Nvidia securities between October 9, 2025, and November 8, 2026. Rosen Law Firm filed it. Kistenmacher, a retail investor, is the named plaintiff. The class has not been certified. Investors who want to lead it have until January 8 to ask the court.

The filing’s allegations come in four parts, and only the first is about an affair. Rosen’s announcement says the suit alleges Huang had an affair with a suspected Chinese spy who holds a role at Megaspeed, a company “suspected of helping China evade export controls.” It says Nvidia’s statements about its relationship with Megaspeed were materially false and misleading at all relevant times. It says the affair raised concerns in the national security community that presented a material risk to the company’s reputation and business prospects, and that the company’s public statements were therefore misleading. The class period runs more than a year. The damages sought are unspecified.

In late October 2025, Nvidia spokesperson John Rizzo told the New York Times that Huang’s interactions with Alice Huang were “not unusual or unexpected,” the ordinary business of a chief executive meeting customers. The company had also said it found “no evidence of diversion” of its chips. And on October 30, 2026, Huang himself described Nvidia’s dealings with Megaspeed as “normal and not unusual.” The Times had reported the day before that American officials found evidence Alice Huang was potentially funneling Nvidia’s advanced AI chips to China and was in a close relationship with Huang. The Times had also reported that American officials concluded she was a Chinese intelligence asset who passed information to Beijing, a finding Reuters said it could not independently verify and China denied. American officials had reportedly been monitoring Alice Huang for more than a year.

Megaspeed’s paper trail starts in Singapore in 2015, when the company was incorporated as 7Road International. Alice Huang, who is not related to Jensen Huang, became its controlling shareholder in March 2023, according to corporate records reviewed by the research group C4ADS, and served as a director and managing director of its Indonesian subsidiary from March to November that year. Late in 2023 the company’s shares were transferred to SwiftData, a Singapore firm that now holds all 10 million of its ordinary shares. C4ADS could not determine who ultimately controls SwiftData, but assessed that Huang may have kept influence over Megaspeed, citing appearances in which she was identified as its chair. Nvidia lists Megaspeed as an official cloud partner on its directory.

Trade data reviewed by Reuters show Megaspeed’s Indonesian subsidiary imported Nvidia hardware between 2024 and 2026, including H100 processors and related components, in shipments from suppliers including Giga Computing, a Gigabyte subsidiary. The H100 is among the advanced processors barred from export to China, though a shipment to Indonesia does not itself prove a violation, and no public finding says Megaspeed broke the rules. The Information reported on Tuesday, citing two people who know Alice Huang, that the relationship helped enable at least $7.5 billion of Nvidia chip shipments, with ties dating to 2023. Reuters said it could not independently verify that figure, and Nvidia did not immediately respond to it.

A Commerce Department investigation into suspected Nvidia chip smuggling to China, centered on Megaspeed, was halted and transferred to the Justice Department after Nvidia’s legal team contacted investigators, the Times reported on Monday. In late summer 2025, Nvidia general counsel Tim Teter called Commerce Under Secretary Jeffrey Kessler about a Bureau of Industry and Security probe into suspected AI-chip smuggling by Megaspeed, asking whether the bureau had played a role in Singapore’s detention of Alice Huang, according to Bloomberg. The same department, in a separate Times investigation published Monday, cleared roughly two dozen Chinese companies to buy or handle Nvidia’s H200 chips, the older AI chip President Trump allowed to be sold to China late last year with a 25 percent cut for the United States government.

Nvidia’s board answered the reporting on Sunday with a short statement. “While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board’s inquiry will examine all available information,” the directors wrote, adding that they had confidence in Huang and his leadership team. The statement names no committee members. It names no outside counsel and no timetable. Huang told employees the same day that he had been unfaithful to his wife, that there was “no excuse for what I did,” and that he supported the investigation and would cooperate fully. He did not name Alice Huang. The board wrote its sentence on Sunday. The Commerce investigation it would need to examine had already been halted and moved to the Justice Department, and the board’s statement does not mention it.

Nvidia closed Monday at $178.67, down $7.97, a 4.27 percent fall that erased about $190 billion of market value, after dropping as much as 8 percent during the session. The fall continued on Tuesday. The shares dropped more than 6 percent, to about $167, and Microsoft passed Nvidia as the world’s second-most valuable company, the first time since June 2025, before losing the lead again by midday as its own shares fell more than 3 percent. Bank of America dropped Nvidia from its list of top stock picks. Cathie Wood’s ARK bought 90,443 shares, worth about $17 million, on Monday. A Stocktwits poll found at least 57 percent of retail traders saying they were buying the dip. One Wall Street analyst put the chance of Huang losing the chief executive’s job at about 15 percent. In early October it sat near $243.

“Down less because of the affair and more because it seems to point to Jensen personally, knowingly dodging export controls with third country transfers like via the company the woman ran,” wrote u/dansdansy on Reddit’s r/stocks on Monday. Another holder in the same forum, u/greenpride32, wrote that “the biggest risks would be if Jensen was found to be complicit in any issues of skirting the laws. For example, if he knowingly proxied GPU’s to Singapore to get around export ban to China.” The holders are arguing about the chips, the moat, and the clearance. The board’s statement is about confidence and an inquiry. u/LostAbbott, in the same thread, asked what business impact the affair had at all and said he had picked up more shares. And on r/NVDA_Stock, u/QuesoHusker, who describes himself as a 22-year retired Army officer with a career security clearance, wrote: “Presumably, Jensen has a Security clearance. It’s almost essential for his job. That is forever gone. And that may make it impossible to continue in his job.”

The complaint asks for a jury trial. Nvidia did not immediately respond to a request for comment on the lawsuit.