Nvidia shares are also losing significantly at the start of trading in New York
Jensen Huang's misstep is putting a strain on Nvidia's business and causing significant price losses on Wall Street.
Quick Look
After reports of an alleged affair between Nvidia boss Jensen Huang and a Chinese spy, the chip manufacturer's shares on the New York Stock Exchange fell by around six percent.
AI-generated summary
Why It Matters
Nvidia is a key player in the AI boom and is at the center of the technological competition between the US and China.
In view of CEO Jensen Huang's alleged affair with a Chinese spy, shares in chip manufacturer Nvidia suffered significant losses at the start of trading on the New York Stock Exchange. After the prices had already fallen in the Dax and on the stock exchanges in Asia, the shares also fell by around six percent at the start of the week in the US.
The experts at Index-Radar see a significant risk in a possible resignation of Jensen Huang. Huang has shaped Nvidia like no other CEO has shaped his company. He is considered one of the key figures in the AI boom.
As a result of the AI boom, Nvidia has become one of the most valuable companies in the world and is in this context at the center of the struggle between the USA and China for technology supremacy. The company's most advanced chips are subject to export restrictions to China.
At the same time, CEO Huang is close to US President Donald Trump. Both have repeatedly spoken out against regulating the industry in order not to fall behind in the race with China. In response to questions about the Nvidia boss, Trump said on Sunday: "I just know that he's a good person, but you never know what's going on." He hoped that everything was okay, that Huang had "really done an incredible thing."
At the weekend there were media reports that, according to US security authorities, the Nvidia boss's affair could have been recruited by Chinese intelligence. The company, whose chips became the key technology in the AI boom, launched an investigation.
Despite the fuss surrounding Nvidia, the Dow Jones index rose 1.4 percent to 52,009 points in early trading. Undeterred by the affair, the technology-heavy Nasdaq 100 rose by 2.4 percent to 27,635 points, continuing Friday's recovery. The market-wide S&P 500 advanced by 1.7 percent to 7,500 points.
Nvidia boss Jensen Huang is said to have fallen for a Chinese spy. The honey trap is an old trick, known in the GDR secret service as “birds for the fatherland”.
What to Watch
AI outlook — possibilities, not facts
Nvidia is investigating the incident
Very likely · Within weeks
Open Questions
- Are the espionage allegations confirmed by official bodies?
- How is the Nvidia supervisory board reacting to the investigation?
