Nvidia CEO Jensen Huang said the company had counted every GPU deployed for a Singapore-based cloud customer under U.S. investigation and described its dealings with the firm as ordinary business. The New York Times reported that U.S. intelligence agencies surveilled Alice Huang, a former top executive at Megaspeed, on suspicion she was a Chinese intelligence asset. Nvidia said Megaspeed is a typical regional cloud customer and that earlier allegations of helping evade U.S. export controls were thoroughly investigated and debunked last year. The U.S. Department of Justice has also asked whether Nvidia's planned acquisition of Hugging Face could affect AI competition. NVDA closed down about 1% on Thursday and is up 15% year-to-date, while retail sentiment on Stocktwits shifted from bullish to bearish over the past 24 hours.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NVDAsemiconductorsartificial intelligenceChina
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/29/2026 | 213.72 |
| Change that session | -0.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Nvidia Facing Questions As Suspected Chinese Intelligence Asset Got Close to Jensen Huang
A report citing anonymous US officials says intelligence agencies concluded that Alice Huang (also known as Huang Le), a senior executive at Megaspeed, was gathering information for Beijing and built a close relationship with NVIDIA CEO Jensen Huang, though no charges have been reported and the report does not accuse Jensen Huang of wrongdoing. NVIDIA says the CEO's interactions with her are normal for his job, and that earlier allegations about Megaspeed were thoroughly investigated and debunked. Direct revenue exposure looks small, since NVIDIA's guidance of $108.0 billion, plus or minus 2%, for the third quarter of fiscal 2027 already excludes China data center compute revenue. The political risk is larger, with Sen. Elizabeth Warren calling for answers from Jensen Huang and NVIDIA's board, while the Justice Department is asking antitrust questions about the planned Hugging Face acquisition. The shares closed at $213.66 on October 29, down 0.8%, for a market value of $5.16 trillion.
- Elizabeth Warren Says Nvidia Board and Jensen Huang 'Owe Congress Answers’ Over Reported Spy Ties— Wants AI Technology Kept 'Out of China's Hands'
Sen. Elizabeth Warren called on Nvidia CEO Jensen Huang and the company's board to answer to Congress after a New York Times report that Huang was reportedly targeted by a suspected Chinese spy. According to the report, U.S. officials determined Alice Huang, a senior executive at Singapore-based Megaspeed, was a Chinese intelligence asset, and Megaspeed bought billions in AI chips; President Donald Trump was briefed about a year ago but decided against acting. Warren urged bipartisan legislation to keep advanced AI technology out of China's hands. Nvidia said Megaspeed is 'no different than many other regional cloud customers' and that the diversion allegations were 'thoroughly investigated and debunked last year.' Chris McGuire of the Council on Foreign Relations said chip diversion through Southeast Asia is as bad as asserted and that the Commerce Department and Nvidia are doing little to stop it.
- Nvidia CEO Huang caught up in reported Chinese spy probe as AI stocks slide
As AI stocks slid on concerns about infrastructure costs and uncertain returns, the New York Times reported that U.S. intelligence agencies concluded Alice Huang, an executive at Singapore-based data center company Megaspeed suspected of helping China obtain restricted Nvidia chips, was also gathering intelligence for Beijing. Surveillance reportedly showed she had a close relationship with Nvidia CEO Jensen Huang, raising concerns about access to sensitive information. President Donald Trump was briefed on the findings roughly a year ago but chose not to act, according to the Times, citing concerns about disrupting Nvidia's chip sales and China trade relations. Megaspeed's Malaysian affiliate purchased at least $4.8 billion in AI equipment containing Nvidia chips between June 2024 and February 2026, according to trade records cited by the Times. Nvidia said its dealings with Alice Huang were ordinary business and that customers such as Megaspeed receive no sensitive trade secrets or national-security-relevant information.
- Investors Who Piled Into China’s AI Boom Just Watched About $480 Billion Vanish in Under Four Months. Are America’s AI Bulls Next?
The STAR 50, Shanghai’s index of AI and chip companies, has fallen 40% from its July high, erasing about $480 billion in market value over roughly four months, according to Reuters. Losses depended on purchase timing, and state-backed investors reportedly sold into the rally, a sign policymakers may have wanted to cool the boom. Goldman Sachs estimates AI stocks make up 42% of China’s market value and 57% of its trading, and the STAR 50’s P/E, once near 250, now sits around 100 versus about 30 for the Nasdaq 100. The KraneShares STAR 50 ETF (KSTR) fell 42.63% from the June 30 close through noon Oct. 28 and is 0.27% lower for the year, while the Invesco QQQ Trust (QQQ) is still up 17.6% year to date. Morgan Stanley forecasts offshore Chinese stocks could fall another 10% to 15% before bottoming.
- China's Stock Market Has Lost $2.4 Trillion as Investors Doubt Its AI Boom Will Ever Pay Off
Mainland Chinese stocks have lost about $2.4 trillion in market value since May as investors lose faith that Beijing's AI boom will turn a profit. The STAR 50, an index of large tech and chip companies, has fallen 40% in under four months, erasing about $480 billion, while the CSI 300 entered a bear market on October 22. According to Goldman Sachs, AI companies account for 42% of the market value and 57% of trading in Chinese shares, so a slump in AI stocks drags the whole market down. Factors cited include weak consumer spending, doubts that AI firms can recoup their investment, U.S. curbs on Chinese robots and data center optical parts, and a reported Beijing push for tech giants to shift to homegrown chips and stop buying Nvidia's. A Beijing-based fund manager said the speculative rally has given way to a bubble that is now bursting.
- China's AI bubble bursts, $480 billion in market value evaporates in under 4 months
The STAR50 index, focused on AI and semiconductor companies, has fallen 40% in under 4 months, wiping out about $480 billion in market value, while the CSI 300 is down about 20% from its June peak. Many high-flying stocks have lost about half their value: Unitree has halved since its August listing, and MetaX and Moore Threads are also down about half since July. Optical component makers for data centers, Zhongji Innolight and Eoptolink, have dropped about 60% from their peaks, partly due to moves in Washington to ban their equipment from U.S. data centers. Even after the decline, STAR50 stocks trade at about 100 times trailing 12-month earnings, well above roughly 30 times for the Nasdaq 100, leaving many investors worried the sell-off is not over. Some funds still view the market positively, seeing lower prices as an opportunity for cautious investors.
Related markets
Latest news
- What is EIP-7702? The Ethereum Upgrade Behind the $6.4B Binance Hack
EIP-7702 is an Ethereum upgrade activated in May 2025 that lets standard wallets temporarily take on smart contract abilities, such as batched transactions, gas sponsorship and limited-permission keys. However, delegated code gets full access to the wallet's funds. On October 29, 2026, an attacker drained some $6.4 billion from Binance wallets across 10 blockchains, mostly within about 20 minutes, and TRM Labs and Chainalysis attributed the theft to North Korea's TraderTraitor group. On Ethereum, the attacker used 50 pre-signed authorizations to turn a Binance hot wallet into a sweeper, while Binance wallets on the other 9 blockchains sent funds through ordinary signed transfers. TRM Labs said this points to a compromise of Binance's hot wallet signing infrastructure rather than a flaw in Ethereum itself.
- Instagram wants 90-minute videos but isn't sharing ad money
Instagram is testing long, YouTube-style videos called Features. Its head says paying creators would cause the company to lose money.
- YPF Sociedad Anónima (BASE:YPFD) Stock Fair Value Edges Higher After Mixed Analyst Revisions
Price targets for YPF Sociedad Anónima (BASE:YPFD) range from US$55 to US$66. JPMorgan and BofA keep positive ratings but trimmed their targets, from US$66 to US$60.50 and from US$65 to US$64, respectively. HSBC moved the stock to a Buy rating with a US$60 target, while Bradesco BBI downgraded it to Neutral with a US$55 target, citing valuation. In the Simply Wall St model, fair value rose from ARS 10,898.60 to ARS 11,533.63, with revenue growth moving from 4.86% to 5.39% and net profit margin from 14.13% to 14.24%. The article also notes one flagged risk for the company.
- Stock Market Today (Oct. 30, 2026): S&P 500 sinks as Amazon, Intel losses shake Wall Street
The article argues that strong AI demand alone is no longer enough to satisfy investors.
- Dan Ives Says AI Disruption Is ‘On Full Display’ In Tech Earnings, Sees 2027 As Inflection Year
Yorkville's Dan Ives said AI-driven disruption is “on full display” in tech earnings, as Amazon, Intel and SanDisk shares fell after their quarterly results. Intel dropped over 30%, its worst day since April 1979. Ives said monetization will take time but still sees 2027 as the major inflection year when AI revenue starts to justify capex, with cloud growth and capital spending as key metrics to watch. Amazon reported Q3 EPS of $1.89 on $201.9 billion revenue, while trailing twelve-month free cash flow was negative $42.4 billion, and it kept its 2026 capex forecast at $220 billion. Alphabet fell 12% after its weak report, wiping out over $500 billion in market cap.
- Chip shortage impact on the tech sector, Burger King and Starbucks turnarounds
Yahoo Finance Executive Editor Brian Sozzi examines Google's (GOOGL, GOOG) striking P/E ratio and how a chip shortage is affecting Intel (INTC) and Sandisk (SNDK). He also interviews Burger King CEO Tom Curtis (QSR) and Starbucks CEO Brian Niccol (SBUX) about food innovation and turnarounds at their brands.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.