US senators demanded tighter export controls on NVIDIA's advanced AI chips.

The trigger was reports of a romance between the company's head, Jensen Huang, and a suspected Chinese intelligence officer.

A class-action lawsuit was filed against NVIDIA, and its market capitalization fell by approximately $190 billion.

Prior to this, the Trump administration had eased export restrictions.

US Senators Elizabeth Warren and Jim Banks called on Congress to tighten restrictions on the export of NVIDIA's advanced chips to China. The initiative emerged following reports of a possible intelligence operation against the company's CEO, Jensen Huang.

In a joint statement dated November 9, 2026, the lawmakers expressed concern that American technology could end up in the hands of Chinese military structures.

"In March, representatives of both parties called on the Commerce Department to suspend or review NVIDIA's export licenses for China and conduct a full national security risk review," the senators noted.

According to them, since then the company has allegedly received permits to supply hundreds of thousands of advanced AI chips, including to organizations linked to the Chinese armed forces.

"Jensen Huang's confirmation of a relationship with a suspected Chinese intelligence agent makes these concerns even more relevant," the statement reads.

Warren and Banks demanded that the AI Overwatch Act be included in the US defense budget for the 2027 fiscal year. The initiative envisages expanding Congress's powers to control the export of advanced semiconductors.

In addition, the lawmakers are considering the Chip Security Act, which would require manufacturers to track chip supplies to counter smuggling, and the MATCH Act, aimed at tightening restrictions on the export of semiconductor manufacturing equipment through allied countries.

"It is time for Congress to take decisive action to close off the routes by which China obtains advanced chips," the senators emphasized.

Huang's romance, investigation and shareholder lawsuit

Huang's saga, investigation, and shareholder lawsuit

The political discussion unfolded against the backdrop of a scandal surrounding the personal relationships of NVIDIA's head. The company's CEO admitted to marital infidelity following publications about his alleged affair with Alice Huang, a former executive of the Singaporean company Megaspeed International.

According to The New York Times, US intelligence agencies suspect the woman of cooperating with Chinese intelligence. At the same time, her involvement in espionage has not been publicly proven.

Megaspeed, which is an NVIDIA client, has also found itself at the center of an investigation by US authorities over suspicions of possible circumvention of export restrictions on the supply of advanced chips to China.

NVIDIA's board of directors initiated an independent review of the circumstances of the alleged intelligence operation. The company emphasized that it currently has no grounds to believe that US state secrets or the corporation's confidential information were compromised.

Huang himself promised to cooperate with the investigation and to continue working in the position of CEO.

On November 9, shareholder Mark Kistenmacher filed a class-action lawsuit against NVIDIA and its head in a federal court in California.

The plaintiff claims that the company misled investors regarding Huang's relationships with Megaspeed representatives and the related business risks. The shareholders are demanding compensation for damages, the amount of which has not yet been determined.

Against the backdrop of the scandal, NVIDIA shares fell by approximately 4.3% on November 9, and the company's market capitalization shrank by approximately $190 billion.

Daily chart of NVIDIA share quotations.

An additional factor of uncertainty was the change in the political situation in the US after the midterm elections. Earlier, Elon Musk lost almost $30 billion in estimated asset value amid the victory of Democrats, who advocate tighter control over data center construction.

The broader AI sector also came under pressure. On November 5, the Nasdaq index fell by 5.5%, NVIDIA shares lost 9.3%, and AMD — 17.3%.

Investors feared a slowdown in infrastructure projects due to political resistance, the high cost of financing and rising electricity costs. At the same time, on November 9, US stock indices recovered, despite NVIDIA's continued decline.

Can't ban, can approve

Cannot be banned, can be approved

The standoff over the supply of advanced American processors to China has been ongoing for several years. Washington has consistently restricted Chinese companies' access to technologies that could be used for the development of artificial intelligence and military systems.

In April 2025, the administration of Donald Trump introduced additional licensing requirements for the export of NVIDIA H20 — processors specially designed for the Chinese market taking into account existing US restrictions.

Notably, shortly before the introduction of the ban, Jensen Huang met with Trump during a dinner at Mar-a-Lago. According to media reports, after the talks the White House initially abandoned plans to tighten controls, including against the backdrop of NVIDIA's promises to invest in the development of American AI infrastructure. However, the restrictions were eventually introduced.

In the summer, the situation changed. In July 2025, Huang again met with the US president, after which the company announced its intention to resume supplies of H20 to China. NVIDIA reported that it had received assurances from the US authorities regarding the issuance of the necessary export licenses.

On August 8, 2025, the US Commerce Department began issuing permits for the export of these processors.

Later, Trump stated that the supplies would be accompanied by the transfer to the US government of 15% of revenue from H20 sales to China. According to the president, he initially demanded 20%, but Huang managed to negotiate a lower rate.

In December 2025, the US authorities also allowed the export of the more powerful H200 to vetted Chinese clients. Such supplies envisaged the transfer to the state of 25% of revenue.

Now, against the backdrop of reports of a possible intelligence operation, Congress is again discussing tightening the export regime.

At the same time, NVIDIA opposes certain legislative initiatives capable of restricting international sales of its products. The company claims that it complies