I never thought I’d have to write an Nvidia article like this.

I’ve spent years thinking about the risks to Nvidia (NVDA).

Competition. Slowing AI spending. Export restrictions. A recession. Customers designing their own chips.

CEO Jensen Huang having an extramarital affair with a Chinese spy was not on my list.

Yet here we are.

Huang acknowledged over the weekend that he had been unfaithful to his wife after reports surfaced about his relationship with Alice Huang, a former executive at Singapore-based Nvidia customer Megaspeed.

U.S. intelligence officials suspect Alice Huang has ties to Chinese intelligence.

Huang told President Trump that he had no idea she was allegedly a spy.

China has denied the spying allegations.

The market's reaction has been brutal.

Nvidia is down 15% over the past two days, wiping out $600 billion in market value.

So I need to address this.

What’s the latest? What could happen to Nvidia? And am I selling?

Nvidia Is Already Being Sued

Every public company lists pages and pages of potential risk factors in its SEC filings.

Anthropic's new S-1 has 90+ pages of such risk factors.

My favorite is the warning about sufficiently advanced AI systems posing “catastrophic or existential risks to humanity.”

Meta has a few unusual ones too.

For instance, the disclosure addressing CEO Mark Zuckerberg’s participation in MMA:

“Mr. Zuckerberg and certain other members of management participate in various high-risk activities, such as combat sports, extreme sports, and recreational aviation, which carry the risk of serious injury and death.”

Companies try to anticipate everything.

Unfortunately, Nvidia's risk factors didn't anticipate its rockstar CEO having an affair with a Chinese spy.

Lawyers have already arrived.

A shareholder has filed a proposed class action against Nvidia and Huang alleging that investors were misled about Huang's relationship with Alice Huang and the associated national-security risks.

Several other securities law firms have announced investigations as well.

The central question will be what Nvidia knew, when it knew it, and whether anything material should have been disclosed earlier.

Suddenly, Anthropic’s 90+ pages of risk factors don’t seem so excessive.

The Government Is the Bigger Risk

I'm much more concerned about what happens in Washington.

For years, the U.S. government and Jensen Huang have had different ideas about how Nvidia should operate in China.

Washington has repeatedly used export controls to limit China's access to America's most advanced AI chips.

Huang has spent years arguing that Nvidia should be allowed to sell more chips into China, warning that cutting Chinese companies off from American technology could ultimately strengthen domestic competitors like Huawei.

Now that fight looks a lot more complicated.

On Tuesday, reports surfaced that Alice and members of her family helped facilitate at least $7.5 billion worth of Nvidia chip shipments through Singapore to Chinese companies.

Meaning Jensen was lobbying Washington for greater access to China at the same time his mistress had billions of dollars in business tied to Nvidia chips reaching the country.

There's no evidence yet that Alice influenced Jensen's position.

But Washington is going to want to know.

The FBI is investigating, lawmakers are demanding answers, and some are already calling for tighter restrictions on Nvidia’s Asian operations.

That's the real risk for shareholders.

The affair won't hurt Nvidia's earnings.

But further restricting Nvidia's access across key Asian markets could.

Could Jensen Huang Actually Lose His Job?

We have to consider it.

Nvidia's board has launched an independent investigation overseen by independent directors and outside counsel.

For now, the board says it has “no reason to believe that either national security or NVIDIA secrets were compromised.”

It also says it still has confidence in Huang and his leadership team.

But if the investigation uncovers evidence that Huang knowingly exposed sensitive information, ignored warning signs, or created additional legal exposure for Nvidia, the board would face a much more difficult decision.

And losing Huang is a legitimate risk to the stock.

Few public companies are as closely associated with one executive as Nvidia is with Jensen Huang.

He's a founder, chief salesman, visionary, and one of the most influential figures in the entire AI industry.

Replacing him wouldn't destroy Nvidia. The company has tens of thousands of employees, dominant technology, and an enormous ecosystem.

But I also don't want to pretend that losing Huang wouldn't matter either.

So... Am I Selling Nvidia?

Something fascinating has happened while Nvidia has lost hundreds of billions of dollars in market value:

Wall Street's earnings expectations have actually gone up.

Analysts currently expect Nvidia to earn $15.93 per share next year.

A week ago, that estimate was $15.91.

Ninety days ago?

$12.84.

In other words, Nvidia's stock is collapsing while Wall Street's expectations for the business continue moving higher.

At $170 per share, Nvidia trades for around 10.5 times next year's expected earnings.

That's remarkable for a company analysts currently expect to grow earnings 71% next year.

I'm taking the Jensen Huang situation seriously.

• The lawsuits are real.

• The government investigations are real.

• The possibility of tighter Asian restrictions are real.

• And there's now a level of key-person risk around Huang that I certainly wasn't modeling a week ago.

But none of those things have changed the numbers yet.

Until they do, I'm holding my Nvidia shares.

If you've got the stomach for what could be a very volatile few weeks, I suggest you do too.