5 Companies Most Affected by Jensen Huang Scandal as Nvidia Loses $400 Billion and Rival AMD Cashes In

SAN FRANCISCO — The scandal surrounding Nvidia CEO Jensen Huang has spread well beyond his own company. It has wiped hundreds of billions of dollars from the AI chipmaker's market value, put a little-known Singapore cloud firm under international investigation and handed rivals an opening.

Huang admitted Sunday to an extramarital affair with Alice Huang, a businesswoman U.S. intelligence officials believe was spying for China. The two are not related. Nvidia's board has launched an independent investigation, led by former federal prosecutor Joon H. Kim. It will examine whether Huang was targeted by a foreign intelligence effort and whether company secrets or national security were compromised.

The fallout has rippled across the technology industry, from chip suppliers in South Korea to server makers in Silicon Valley. Here are five companies most affected so far.

1. Nvidia: hundreds of billions wiped out

No company has been hit harder than Nvidia itself. The world's most valuable chipmaker lost roughly $400 billion in market value over two trading days. Its shares fell 4.27% on Monday and about 5.5% on Tuesday, and on Tuesday the stock hit a six-month intraday low of $165.89. During trading it briefly fell behind Microsoft to become the world's third-most valuable company.

Nvidia shares rebounded about 3% on Wednesday as the broader AI trade recovered.

The scandal also exposed a long-standing concern: Nvidia has no clear successor to Huang, who co-founded the company in 1993. Dan Ives of Yorkville Ives called it "a black eye moment for Jensen." He said the scandal would create an overhang on the stock until the investigation ends.

Nvidia also faces a shareholder lawsuit alleging that investors were not adequately informed about its relationship with Megaspeed and the resulting national security risks. Bipartisan lawmakers are calling for a federal investigation and tighter limits on chip exports to China.

Billionaire investor Bill Ackman called Huang an "incredible human" but said that if the situation is more than an affair, "it is obviously a real problem." "I am hoping for a simple affair, not a risk to our national security," Ackman wrote on X.

2. Megaspeed: an obscure firm under a global spotlight

Megaspeed, the Singapore-based cloud computing company where Alice Huang was an executive, has been thrust into the center of the scandal.

According to The New York Times, the company bought more than $4.8 billion of Nvidia chips over the past two years, making it one of Nvidia's biggest foreign customers. Nearly $2 billion of those chips were installed in data centers in Malaysia and Indonesia that allegedly served Chinese customers remotely, according to the Times. The newspaper also reported that Megaspeed rented computing power to Chinese internet giant Alibaba and other Chinese companies.

The company is under investigation in both the United States and Singapore. The U.S. Commerce Department is examining whether Megaspeed sidestepped American export controls. Singapore police confirmed an active investigation into "suspected breaches of our domestic laws."

Megaspeed began as an offshoot of a China-based gaming firm. Its assets rose to $3 billion in 2024 from $33 million in 2023, according to business filings. CBS News reported that the company's unusual global footprint, including vacant offices, is fueling questions about whether it is a front for the Chinese government.

Megaspeed has previously said there was no evidence of any violations involving illegal chip transfers. China has called the spying allegations groundless.

3. Super Micro Computer: renewed scrutiny

Server maker Super Micro Computer, one of Nvidia's closest partners, has been drawn back into questions about how Nvidia chips reach China.

According to Fortune, a separate case involving about $2.5 billion of computer servers equipped with Nvidia chips is under scrutiny for possible diversion. Supermicro is led by Charles Liang, a longtime friend of Huang.

Culper Research, an activist short seller that bet against Nvidia, published a report in May alleging possible smuggling links between Supermicro, Nvidia and Megaspeed. The report said Huang had "not only vouched for Megaspeed" but appeared to have walked alongside the company at every step.

U.S. authorities have investigated whether billions of dollars in Nvidia hardware that Megaspeed bought through Nvidia's server partners ended up with Chinese firms barred from receiving it. No wrongdoing by Supermicro has been established.

4. SK Hynix: export-control risk

South Korea's SK Hynix, which supplies more than half of the high-bandwidth memory used in Nvidia's AI chips, faces potential fallout from the political backlash.

Lawmakers from both parties are citing the scandal as they push to fold bills banning exports of advanced AI chips to China into the National Defense Authorization Act. Analysts say tighter export rules could complicate SK Hynix's plans to expand its plant in Dalian, China. Its heavy reliance on Nvidia also leaves it exposed to any disruption at its biggest customer.

Seoul Economic Daily reported that Morgan Stanley cut its price targets for SK Hynix and Samsung Electronics by as much as 38%.

So far, however, investors have largely shrugged off the risk. SK Hynix shares rose 4.7% on Monday and 5.36% on Wednesday as chip stocks rebounded. Analysts said Samsung, which is less dependent on Nvidia, could benefit if the scandal shifts demand toward Nvidia's competitors.

5. AMD: the biggest winner

Not every company has suffered. Advanced Micro Devices, Nvidia's main rival in AI chips, has emerged as the biggest winner so far.

AMD shares surged 13.26% to $508.58 on Monday, the first trading session after Huang's admission, after Oppenheimer upgraded the stock to buy. The shares rose another 5.2% on Tuesday.

Ryu Young-ho, a senior analyst at NH Investment & Securities, said Nvidia's rivals, including AMD, could attract more attention in the short term. He said that could put Samsung, which has close business ties with AMD, in the spotlight.

Other chip stocks also held up. Taiwan Semiconductor Manufacturing Co., which manufactures Nvidia's chips, jumped about 6.5% in Taipei on Monday. Foxconn, Nvidia's major server assembly partner, rose more than 8%.

What comes next

Nvidia reports third-quarter earnings on Nov. 17. Huang has been invited to a closed-door briefing with House committee chairs on Nov. 18. Analysts expect the board's investigation to take four to six weeks. Its findings could determine whether the damage stays largely confined to Nvidia or spreads more widely across the global AI supply chain.