The news knocked about $250bn (£190bn) off the chipmaker's market value on Monday, as the share price fell by more than 4%. Hundreds of billions of dollars were wiped from the company in the sell-off. Huang owns only about 3.5% of Nvidia. The company uses a single class of voting shares, so that stake would not be enough to veto a board decision.
Trump has raised concerns that allowing China to lead in artificial intelligence would strengthen Beijing's military and surveillance capabilities. Nvidia's most advanced AI semiconductors, including the GB200 Blackwell super chip, remain blocked from the Chinese market.
President Donald Trump told reporters he had put the question to Huang directly."I asked him that question, 'Did you have any idea she was a spy?' He said 'I had no idea she was a spy' and I really believe him,"Trump said. Trump's remarks were the first public indication of whether Huang knew of the woman's alleged ties to Chinese espionage. Trump called the Nvidia boss an"honourable guy"and said he felt"very confident that he will be in good shape"after the investigations.
"I have not heard that he did anything wrong,"Trump said. He has continued to defend Huang, describing him as an honourable man and staying close to one of the most influential executives in the US technology industry. Huang said he was"committed to protecting Nvidia and supporting America's national security"and would cooperate with the investigation. He has also been asked to appear next week for a joint closed-door briefing before several congressional committees.
The case comes about ten days before a planned trip by Trump to China. The president said he was"sure"Chinese leader Xi Jinping would"ask me about it"when they next met. Alongside that request, it was said to be"vital that Congress determines the extent to which US national security has been placed at risk."Nvidia has declined to comment.
French reporting said Huang's alleged partner was suspected by US intelligence of working for China. Separate contact was also sought from Nvidia for comment on a lawsuit tied to the case.