Nvidia Sinks 4.2 Percent as Board Probes CEO Jensen Huang
(MENAFN) Shares of Nvidia tumbled late Sunday after the company’s board opened an independent investigation into CEO Jensen Huang over an extramarital affair he has admitted, according to reports. The semiconductor giant’s stock slid roughly 4.2% in late-night trading on the Robinhood platform.
The probe came after Huang acknowledged infidelity to his wife and apologized to employees, board members and shareholders in a company-wide memo over the weekend.
The inquiry follows media reports alleging that Huang had a relationship with a former executive of Megaspeed International. US intelligence agencies reportedly suspect the executive of working as a Chinese intelligence operative.
US Secretary of State Marco Rubio reportedly oversaw the preparation of a classified intelligence memo earlier this year. It warned senior administration officials of counterintelligence risks tied to the relationship.
Huang has vowed to cooperate fully with the board’s independent inquiry. He also reaffirmed his commitment to US national security and to the company’s operations.
The fallout piles fresh pressure on the AI chipmaker, whose shares have been under selling pressure since last month amid worries over technology spending and the outcome of the US midterm elections.
Investors in Asia, however, largely brushed off the news. Shares of Nvidia’s suppliers in the region held steady, buoyed by a broader rebound among US tech peers.
The probe came after Huang acknowledged infidelity to his wife and apologized to employees, board members and shareholders in a company-wide memo over the weekend.
The inquiry follows media reports alleging that Huang had a relationship with a former executive of Megaspeed International. US intelligence agencies reportedly suspect the executive of working as a Chinese intelligence operative.
US Secretary of State Marco Rubio reportedly oversaw the preparation of a classified intelligence memo earlier this year. It warned senior administration officials of counterintelligence risks tied to the relationship.
Huang has vowed to cooperate fully with the board’s independent inquiry. He also reaffirmed his commitment to US national security and to the company’s operations.
The fallout piles fresh pressure on the AI chipmaker, whose shares have been under selling pressure since last month amid worries over technology spending and the outcome of the US midterm elections.
Investors in Asia, however, largely brushed off the news. Shares of Nvidia’s suppliers in the region held steady, buoyed by a broader rebound among US tech peers.
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