Breaking: Nvidia founder Jensen Huang to stand down as CEO

Jensen Huang, the co-founder of global artificial intelligence giant Nvidia, is stepping down as chief executive.

The news comes days after the California-based company launched an independent investigation following Mr Huang's acknowledgement that he had an affair with a Chinese business associate.

According to The New York Times, US intelligence determined that the woman — former Megaspeed managing director Alice Huang — was gathering information for China.

Nvidia's board of directors held an emergency meeting that reportedly continued into the early hours of Thursday morning, local time.

The company and Mr Huang are also facing a proposed class action accusing them of defrauding shareholders by concealing Mr Huang's ties with Ms Huang — a Chinese citizen and former executive at the Singapore-based data centre company.

US President Donald Trump earlier this week confirmed the FBI was looking into the affair, and described Mr Huang as a "very honourable man".

The company has since become the top supplier of AI chips at the centre of the global AI boom and US-China technology rivalry.

Mr Huang's departure could leave a leadership vacuum at the roughly $US4 trillion ($5.8 trillion) chipmaker he co-founded and built over more than three decades.

Mr Huang, 63, has no obvious successor and owns about 3.6 per cent of Nvidia's stock.

Asian shares fell on Thursday as investors kept a nervous eye on what action Nvidia's board would take.

Nvidia stock has shed 24 per cent of its value over the past month, wiping around $US1.4 trillion ($2 trillion) off its market capitalisation.