Nvidia lost its $4 trillion market value for the first time since July 2025 as CEO Jensen Huang resigned after a spying scandal.
Jensen Huang Resigns Amid Spy Scandal
Jensen Huang stepped down from the company he founded after revelations of extramarital affairs. One woman involved is suspected by US authorities of spying for China.
Shares of the artificial intelligence chip manufacturer plunged about 14% early Thursday. The stock recovered much of the drop to close down 4.3%.
The stock fell another 2% Friday. This brought its two-day decline to about 6.3%.
Commerce Dept Spokesperson tells me Secretary Howard Lutnick has agreed to voluntarily testify before the Senate Banking Committee Dec 10th about advanced NVIDIA chips possibly evading export controls and possibly going to China. Spokeswoman Kristen Eichamer tells me, “Secretary…
Ives cut his price target for the company from $300 to $225 after Huang left.
Senate Banking Committee Chairman Tim Scott requested that Huang and Commerce Secretary Howard Lutnick appear in a public hearing on December 3. Scott warned that the pair would face subpoenas if they failed to comply.
Recent reports raise serious concerns about our national security and the protection of sensitive U. S. technology. I am requesting that NVIDIA CEO Jensen Huang and Commerce Secretary Howard Lutnick testify before the Senate Banking Committee. The American people deserve… pic.twitter.com/Xu1kiNzkhW
Recent reports raise serious concerns about our national security and the protection of sensitive U.S. technology. The American people deserve answers.
Tim Scott, Senate Banking Committee Chairman
Three House committees also summoned Huang and Nvidia General Counsel Tim Teter to appear for separate hearings on December 1 and 2. Under Secretary of Commerce Jeffrey Kessler was called for the December 3 hearing.
Foreign Affairs Committee Chairman Brian Mast, Intelligence Committee Chairman Rick Crawford, and Select Committee Chairman John Moolenaar sent a joint letter. They requested written confirmation of Huang’s acceptance by 8 p.m.
Kennedy: Apparently, the Department of Commerce greenlit the sale of $4 billion in advanced chips to the spy’s company. I'd like to hear from the Secretary of the Treasury. And more to the point, the Secretary of Commerce. I mean, why were they selling the chips? This whole thing… pic.twitter.com/Yj76njQphy
Tim Scott requested that Lutnick appear on December 10. Kristen Eichamer told Fox News that Lutnick has proactively decided to appear before the committee to answer questions.
China rejected the espionage allegations as unsubstantiated.
WOW — Bessent throws Lutnick under the bus: "Treasury, War, USTR, and State were in favor of putting Megaspeed on the entity list for months, but Commerce has the pen. You will have to ask them about their internal processes." pic.twitter.com/vJEegPggTa
Secretary of State Marco Rubio verbally briefed the president in May while Trump traveled to China aboard Air Force One. Intelligence indicated Huang was the target of espionage in a book assembled by the Office of the Director of National Intelligence last fall for a small circle of administration officials with top secret clearance.
Before the news broke, Lutnick was accused of slow-rolling in putting Megaspeed on the Entity List. Treasury Secretary Scott Bessent lost his patience over the delay.
Howard Lutnick has "proactively agreed" to appear before Congress “Secretary Lutnick has proactively agreed to appear voluntarily before the Banking Committee to address their questions,” a spokesperson for Lutnick, Kristen Eichamer tells @KitMaherCNN
Cabinet Officials Clash Over Megaspeed
Treasury Secretary Scott Bessent publicly criticized the Commerce Department. He said that several major government agencies had supported blacklisting Megaspeed for months before the scandal broke.
Treasury, War, USTR, and State, they were in favor of putting Megaspeed on the entity list for months.
Scott Bessent, Treasury Secretary
Bessent spoke during a CNBC appearance. He said that Commerce has the pen and directed questions about internal vetting processes to Lutnick’s department.
Bessent and Lutnick clashed during a tense meeting in the Situation Room. They argued over the delay in restricting exports to Megaspeed.
The policy friction centers on advanced semiconductor shipments.
U. S. Treasury Secretary Scott Bessent blames Commerce Secretary Howard Lutnick over Nvidia chip mess: "Treasury, War, USTR and State were in favor of putting Megaspeed on the entity list for months." pic.twitter.com/0BTlHymwUY
The Trump administration authorized sales of H200 chips to approved Chinese customers under a revenue-sharing arrangement agreed upon in August 2025. Nvidia and AMD agreed to share 15% of their Chinese sales revenue with the U.S. government.
Critics argue that oversight failed.
This Administration's greed is out of control, putting America's national security at risk. Commerce Secretary Howard Lutnick has betrayed the public trust and must immediately resign. If he fails to do so on his own accord, Congress must hold him accountable and move forward…
Lawmakers Investigate Export Controls
Democratic lawmakers on Thursday opened an inquiry into the administration’s handling of chip sales. They alleged that the revenue-sharing arrangement operated as an unconstitutional export tax system.
Senior White House officials discussed whether to oust Lutnick over the department’s sluggish response to intelligence warnings.
Elon Musk says a petition to reinstate Jensen Huang as $NVDA CEO is underway and that he plans to sign it. That comes as Nvidia employees are already pushing for Jensen’s return. pic.twitter.com/nOur0HR0sD
President Donald Trump maintained confidence in his Commerce Secretary. Reuters reported that the administration said Trump maintains complete confidence in the secretary and his ability to carry out the position.
Congressional committees press forward with investigations into potential espionage and private company interference in export enforcement.
China’s foreign ministry criticized tightening U.S. export regulations as a threat to global supply chain stability. China warned that the tightening of US regulations on the export of semiconductors would threaten the stability of global industry and supply chains. Beijing said that it has consistently opposed the abuse of export control measures.
