Nvidia Shares Drop 4% to $178.83 as Board Launches Probe of CEO
Jensen Huang admitted in an internal memo that he was unfaithful to his wife, following reports that a Chinese executive funneled intelligence to Beijing.
By Naomi Tesfaye ·
Nvidia shares lost more than 4 percent in Monday morning trading, settling at $178.83. The decline marked the first market reaction since the California-based chip maker announced it was investigating its chief executive. The stock remained the second largest company in the world by market capitalization, holding a value above $4 trillion. Apple currently holds the top spot.
The board of directors initiated an independent review on Sunday. The company stated the probe follows recent reporting that founder and CEO Jensen Huang was targeted by a foreign intelligence effort. A committee of independent directors will oversee the process with the help of outside independent counsel. Nvidia said Huang fully supports the review and intends to cooperate.
The scrutiny stems from a late October report by The New York Times. The paper identified Alice Huang, a top executive at Singapore-based data company Megaspeed, as the center of a Chinese espionage plot. U.S. intelligence officials determined that Alice Huang developed a close relationship with Jensen Huang while funneling information to Beijing. The Chinese government called the allegations baseless and slanderous. Neither Alice Huang nor Megaspeed International responded to requests for comment.
In an internal message shared with employees, partners, and shareholders on Sunday, Jensen Huang admitted he was unfaithful to his wife. He stated that his actions hurt his family and that there is no excuse for what he did. The memo did not name Alice Huang or any other individual. Huang said he is deeply sorry and committed to earning back the trust of those he serves.
Huang addressed the company's strategic position in the memo. He wrote that he is committed to protecting Nvidia and supporting America's national security. He described himself as proud and grateful to be an American. Nvidia has been a central beneficiary of the artificial intelligence boom, posting strong revenue quarters despite political debates over data centers and concerns about a financial bubble.
The broader market showed resilience on Monday. The Dow Jones Industrial Average rose 1.4 percent, and the S&P 500 increased 1.7 percent. The tech-heavy Nasdaq Composite climbed 2.2 percent. These gains helped investors recover from losses sustained during a selloff last Thursday. Nvidia's spokesperson previously told ABC News that Jensen Huang's interactions with Alice Huang were not unusual or unexpected for his role.
More Business · Business Watchdog · Report a business · Got a Story?
