There are scandals that stay in the tabloids and scandals that wander into the national security briefing. Nvidia's is doing the latter.

Republican Sen. Kevin Cramer of North Dakota wants Nvidia Corp. (NVDA) CEO Jensen Huang to resign over his reported relationship with a suspected Chinese intelligence operative, warning that the potential for extortion could threaten national security.

An Extortion Risk Too Big To Shrug Off

"The potential for extortion is so tremendous that something as sensitive as Nvidia chips, I just think he's got to go," Cramer told Politico on Tuesday.

Cramer, a member of the Senate Banking Committee, argued that Huang's admitted infidelity raises security concerns regardless of whether the woman was actually working for Chinese intelligence. "If the worst thing he did in real life is infidelity with this woman who may or may not be a Chinese spy — but she might be — that's enough," he said.

He also dismissed Nvidia's independent investigation as "fine, but not nearly enough."

The remarks followed an October 29 New York Times investigation linking Huang to Alice Huang, a former executive at Singapore-based Megaspeed whom U.S. authorities reportedly identified as a Chinese intelligence asset. The allegations have prompted congressional scrutiny.

Trump Says The FBI Is Looking Into It, And He Believes Huang

President Donald Trump said Monday that the FBI was examining the matter. "I know the FBI is looking into it," he told reporters, adding that Huang denied knowing the woman was a spy.

Trump defended the CEO: "I really believe him."

Beijing, for its part, is not amused. Chinese Foreign Ministry spokesperson Guo Jiakun rejected the allegations as "groundless" and "a smear" in a statement shared with Reuters on November 9.

Nvidia Brings In Outside Muscle

Nvidia said Sunday that its independent directors would investigate potential foreign intelligence targeting. The board said it had "no reason to believe" company secrets or national security were compromised.

On Tuesday, the chip giant appointed former acting U.S. Attorney Joon H. Kim and law firm Wachtell, Lipton, Rosen & Katz to conduct the investigation.

Huang has separately acknowledged infidelity in an employee message on Sunday, saying, "I take full responsibility for what I did."

Nvidia's board has reaffirmed confidence in Huang despite mounting investor concerns.

Price Action: NVDA shares were trading 0.94% higher at $170.48 in after-hours trading on Tuesday, according to market data.