Nvidia Shares Drop 7.2% to 7-Month Low
Nvidia shares fell 7.2% due to an investigation into foreign espionage against CEO Jensen Huang
Translated by Qiyas from السياسة — Original source
- Amid an internal investigation into allegations that its chief executive was targeted by foreign espionage
Shares of the US-based Nvidia fell on Monday to their lowest level in seven months, as fallout from an internal probe into whether CEO Jensen Huang was the target of foreign espionage raised questions about his future at the helm of the artificial intelligence chipmaker.
According to Reuters, Nvidia’s stock dropped 7.2% amid growing concerns following a media report alleging a personal relationship between Huang and a Chinese businesswoman suspected of passing information to Beijing.
The investigation, announced on Sunday, came after reports about that relationship. Huang admitted to company employees that he had been unfaithful to his wife, without providing further details.
The developments have once again highlighted Huang’s pivotal role in leading Nvidia, a dominant player in the AI chip industry, while raising questions about the impact of the controversy on the stability of its management.
The company affirmed its board’s confidence in its CEO, while analysts noted there is no clear successor who could assume leadership if he were to step down.
Nvidia shares fell about 5% in pre-market trading, extending a wave of losses that began last week, with estimates suggesting a market value decline of approximately $250 billion from its previous closing level.
According to data from the London Stock Exchange Group, Huang owns about 3.6% of Nvidia’s shares, making him the company’s fifth-largest shareholder. He also employs a management style that allows dozens of senior executives to report directly to him.
Last month, The New York Times reported that Huang had an affair with Alice Huang, a former executive at Singapore-based Megaspex, with whom he is not related.
According to the report, the woman had previously been investigated by US authorities, which concluded that she was working on behalf of Chinese intelligence.
In an official statement, Nvidia’s board said it currently had no reason to believe that company secrets or US national security had been compromised. It added that a committee of independent directors, assisted by outside legal counsel, would conduct the investigation, and that Huang had pledged full cooperation.
