Nvidia loses $430 billion as Washington turns on Jensen Huang

Nvidia has lost about $430 billion in market value in two days as pressure grows in Washington over CEO Jensen Huang's ties to a businesswoman U.S. intelligence reportedly concluded was a Chinese spy. Nvidia shares closed down 5.5% at $168.89 on Tuesday following a 4.3% drop on Monday according to Yahoo Finance.

That leaves the stock down about 9.5% since Friday's close wiping out roughly $430 billion in market value and erasing all of Nvidia's gains for 2026. The independent members of Nvidia's board have retained Joon Kim, a former acting U.S. Attorney for the Southern District of New York, and his firm Wachtell, Lipton, Rosen & Katz to carry out an investigation.

Senator Kevin Cramer, a North Dakota Republican on the Senate Banking Committee, called on Huang to step down telling Politico that the risk of extortion was too great. The potential for extortion is so tremendous that something as sensitive as Nvidia chips, I just think he's got to go, Cramer said.

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Former National Economic Council director Larry Kudlow also urged Huang to resign on his Fox Business show. Lawmakers are investigating whether Huang shared privileged information with Alice Huang, a former banking executive who became the controlling shareholder of Singapore cloud firm Megaspeed in March 2023.

Megaspeed is listed by Nvidia as a cloud partner. House Foreign Affairs Committee Chairman Brian Mast said he was prepared to subpoena Huang unless he responded to a request for a briefing. President Donald Trump said the FBI is looking into the matter and that Huang told him he had no idea the woman was a spy. China has denied the intelligence allegations.