Nvidia stock faced renewed scrutiny on Nov. 7 after an investigation questioned U.S. approvals for Chinese chip buyers. The New York Times reported that two approved companies had connections to blacklisted Chinese technology businesses.
The findings followed a separate congressional request for Nvidia CEO Jensen Huang to explain reported intelligence concerns. Three Republican committee chairmen requested a closed-door briefing on Nov. 18.
Meanwhile, Nvidia shares closed at $186.64 on Friday, recovering 2.78% after Thursday’s 9.26% decline.
Congress Summons Nvidia CEO Over Relationship with Chinese Spy
With the latest report, Nvidia is now facing additional pressure regarding its ties to China. The country has historically accounted for one-fifth of Nvidia’s revenue, but the U.S. has restricted sales of advanced chips, including the H200.
However, underground networks have been able to bypass export restrictions, allowing companies in Mainland China to get these chips. While the US is cracking down on that, Nvidia CEO Jensen Huang himself also reportedly lobbied President Trump to allow the company to sell some of its most advanced chips to China.
However, Huang is now under scrutiny for personal relationship with a woman who has since been identified as a Chinese spy.
According to The New York Times, U.S. intelligence officials suspected Alice Huang of collecting information for China’s Ministry of State Security. The report said she developed a close relationship with Nvidia CEO Jensen Huang while working at Singapore-based Megaspeed.
However, the allegations do not establish that Jensen Huang knowingly shared sensitive information with Chinese intelligence.
Alice is an executive at Megaspeed, a Singapore-based data center firm that is also a member of Nvidia Cloud Partner network. Nvidia has denied the reports and claims that the meetings were routine business.
Still, Congress has already summoned Huang to appear before the House on November 18. The summons to Huang, dated November 4, is signed by three Republican committee chairs and is set for a closed-door briefing with Huang on the matter.
Nvidia Stock Recovers After Sharp Technology Sell-Off
Nvidia stock closed at $186.64 on Nov. 6, gaining $5.04 from Thursday’s $181.60 close.
However, the rebound followed a 9.26% loss on Nov. 5. The shares remained approximately 22.9% below their 52-week high of $243.37.
Friday’s trading range extended from $185.22 to $194.90, according to StockAnalysis.
The stock also traded below $200, a level it had breached during the preceding decline.
The wider semiconductor sector recovered on Friday. However, concerns over artificial intelligence infrastructure spending and financing costs continued to affect investor sentiment.
Political uncertainty presented another consideration. Democrats won control of Congress in the November midterm elections, but the results did not establish why Nvidia shares declined.
The company’s China operations face separate regulatory questions.
The Commerce Department’s licensing decisions determine which Chinese customers can obtain advanced processors. Future restrictions could affect Nvidia’s sales opportunities.
However, the company’s previous financial disclosures indicated limited recent H200 revenue from customers based in China.
Nvidia stock investors will also monitor the company’s upcoming third-quarter fiscal 2027 earnings.
Nvidia scheduled the results for Nov. 17, one day before the proposed congressional briefing.
The earnings release could provide updated revenue figures, management guidance and information about demand for artificial intelligence computing.
The congressional request remains unresolved. Nvidia had not publicly confirmed its attendance at the proposed Nov. 18 session.
For Nvidia stock, the immediate developments concern earnings performance, export licensing and congressional scrutiny.
This article provides market information, not investment advice. Equity prices carry financial risks, and regulatory developments do not guarantee future stock movements.
Oluwapelumi Adejumo is an experienced cryptocurrency journalist who has contributed to leading blockchain news platforms, including CryptoSlate and BeInCrypto.
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