Nvidia stock falls 5% as scrutiny turns to Jensen Huang’s relationship with alleged Chinese spy
Nvidia shares dropped 5% in premarket trading after the board launched an independent review.
Quick Look
Nvidia shares fell 5% in premarket trading after the tech giant launched an independent investigation into CEO Jensen Huang's relationship with Alice Huang, an executive at Megaspeed whom U.S. intelligence agencies identify as a Chinese spy.
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Why It Matters
Nvidia board launched an independent investigation after intelligence reports linked CEO Jensen Huang to an alleged Chinese spy.
Nvidia shares were down around 5% in premarket trading Monday after the tech giant was rocked by an investigation into CEO Jensen Huang's relationship with a businesswoman who intelligence agencies say is a Chinese spy.
U.S. intelligence agencies said Alice Huang, an executive at cloud company Megaspeed, has been passing information to Beijing, according to reports in The New York Times and The Financial Times.
Nvidia said its board has launched an independent investigation following the reports that Huang was the target of a "foreign intelligence effort."
Huang "fully supports the review and has committed to cooperating with it," the company said in a Sunday statement.
The co-founder and CEO told staff in an email that he had "fallen short" of his responsibility to serve his colleagues, the board, partners and shareholders around the world.
"I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," Huang said in the email.
China's Foreign Ministry spokesperson Guo Jiakun said on Monday the "so-called Chinese spy narrative" was unsubstantiated, Reuters reported.
Nvidia was last trading down 4.8% in premarket trading.
What to Watch
AI outlook — possibilities, not facts
Independent investigation will issue findings
Likely · Within weeks
Open Questions
- What specific information was passed to Beijing?
- Will Jensen Huang step down as CEO?
