Nvidia Scandal Raises Questions Over Ties to Chinese Intelligence

Former Nvidia CEO Jensen Huang is facing investigations from the U.S. Congress, the FBI, and the Department of Justice. Authorities are examining the executive's relationship with a woman suspected of having ties to Chinese intelligence. The company asserts that there was no data compromise or breach of national security.

Commerce Secretary Howard Lutnick is also under scrutiny. Reports point to his resistance against pressures to restrict companies accused of shipping advanced artificial intelligence chips to China. Lutnick received intelligence warnings regarding Huang's contacts before attending public events with the executive.

Cantor Fitzgerald, previously led by Lutnick and now under the leadership of his children, reduced its position in Nvidia stock by nearly 50% between September 2025 and March 2026. However, the firm maintained various business dealings with partners of the chipmaker and continued to promote positive recommendations on the asset in the market.

Ethics experts point out that the closeness between the secretary and his family's investments raises concerns about the use of insider information. The uncertain landscape intensifies with Huang's resignation and the new export restrictions authorized by the U.S. government in November.

Instability in the chip sector may increase volatility for tech stocks and reduce risk appetite for companies that rely on high-performance semiconductors.