Nvidia Shares Slide as Board Probes CEO Over Suspected Chinese Spy Affair
NVIDIA shares dropped significantly on Monday following revelations that Chief Executive Jensen Huang had an affair with a businesswoman suspected of being a Chinese intelligence asset. Early trading saw the chipmaker's stock plunge by 8% before recovering to roughly 4% lower than Friday's closing price.
The controversy unfolded after reports indicated that Huang maintained a relationship with Alice Huang, an executive at a Singapore-based data centre firm whom US intelligence suspects of gathering information for China. In response to the disclosures, Nvidia's board of directors announced an independent investigation on Sunday to examine whether the CEO was targeted by a foreign intelligence effort.
Nvidia stated that it currently has no reason to believe that corporate secrets or US national security were compromised, but pledged to review all available information. In a statement to employees, Jensen Huang admitted to infidelity, apologized to his family and colleagues, and expressed commitment to protecting the company and American security.
The situation has drawn varied international reactions. China's Foreign Ministry dismissed the espionage allegations as a groundless smear, while US President Donald Trump defended Huang as an honorable figure who has driven significant advancements for the country. Meanwhile, rival semiconductor firms including AMD, Broadcom, and Marvell Technology saw their stock values rise following the market opening.
