Nvidia CEO Jensen Huang is under fire after admitting to an affair with an alleged Chinese operative, and it's bad news for Nvidia investors and possibly for him personally.

• Huang confirmed an affair with a woman tied to a company doing business with Nvidia, and reports say the Justice Department knew about the relationship for about a year before it went public.
• The bigger worry isn't the affair itself but whether sensitive chip technology leaked to China during that time, including questions about advanced chips allegedly shipped to a company with no real office.
• Nvidia's stock dropped sharply on the news, wiping out a huge chunk of market value, since investors fear this could turn into a national security problem, not just a personal scandal.
• Huang previously negotiated with the Trump administration over how much Nvidia could sell to China and how much of those sales the U.S. government would take a cut of, so any sign he was compromised raises serious doubts about those deals.
• Trump publicly defended Huang as "a fine person" and praised his work, but didn't deny being briefed on the intelligence beforehand.

Outlook: If investigators find Huang's decisions were influenced or that restricted technology reached China, he will likely be forced out; if it's shown he kept the woman away from sensitive information, he may survive, though pressure to step back is already building.