Nvidia’s GPU story gets a courtroom plot twist as shareholders sue Huang

Nvidia and CEO Jensen Huang were sued by shareholder Mark Kistenmacher alleging they defrauded investors by concealing Huang’s alleged relationship with Alice Huang, a Megaspeed executive and suspected Chinese spy. The proposed class action was filed Monday in the U.S. District Court for the Northern District of California and alleges Nvidia and Huang made materially false and misleading statements about the company’s dealings with Singapore-based Nvidia customer Megaspeed.

Nvidia’s board opened an independent investigation after reports that Huang was the target of a foreign intelligence effort, the company said Sunday. A committee of independent directors, assisted by outside counsel, will oversee the inquiry. “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,” Nvidia said, adding that it “has confidence in Jensen and...”

Kistenmacher seeks to represent investors who bought Nvidia stock between October 9, 2025, and November 8, 2026. The suit accuses Nvidia and Huang of violating Section 10(b) of the Securities Exchange Act and Rule 10b-5, and Huang of violating Section 20(a), which can hold executives liable alongside a company. It seeks unspecified damages and a jury trial. Kistenmacher is represented by The Rosen Law Firm.

The complaint targets four statements. Two came from Nvidia spokesperson John Rizzo in October 2025, when he told The New York Times that Nvidia’s employees had “found no evidence of diversion” at Megaspeed and that Huang’s visits to customer events were routine. A third came from Rizzo last month, when he said Huang’s interactions with Alice Huang were “not unusual or unexpected.” The fourth was Huang’s own description of Nvidia’s dealings with Megaspeed as “normal and not unusual” in an interview with Bloomberg on October 30. The suit alleges each statement was misleading because of Huang’s relationship with Alice Huang.

Alice Huang, a former Megaspeed executive, is not related to Jensen Huang, Reuters reported. The New York Times reported Sunday that Nvidia opened its investigation after Huang acknowledged to the company’s board that he had been intimate with Alice Huang. The newspaper also reported that U.S. Secretary of State Marco Rubio oversaw the drafting of a classified memo this spring warning top administration officials about the relationship, circulated ahead of U.S. President Donald Trump’s trip to China in May. The allegations in the complaint have not been tested in court.