The Nvidia chief's infidelity deal could be expensive for small savers

Jensen Huang has become a leading figure in the global AI race, as CEO and founder of chip maker Nvidia. But now it is rocking under his feet after it was revealed that he had a romantic relationship with a woman who, according to media reports, is pointed out as a Chinese spy.

Nvidia's board has announced that the matter will now be reviewed in an independent investigation. At the moment, there is nothing to indicate that national security or Nvidia's company secrets have been compromised, the message reads.

However, the news has caused concern on the stock market. Nvidia's stock falls by almost five percent in pre-market trading on the US stock exchange. This means that more than SEK 2,000 billion of the company's market value has gone up in smoke, if the trend holds when trading opens this afternoon.

- This cannot be interpreted in any positive way for the company or for Jensen Huang himself, says Elin Benjaminsson, stock market strategist at Avanza.

The stock has risen by 300 percent in the past three years and at the time of writing has more than 117,000 owners at Avanza alone. In addition, the share is included in many popular global and tech funds.

- Nvidia is the most owned US stock with us. It has gone incredibly well in recent years, so it is reasonable that people have applied there. How the share price develops affects many people, says Elin Benjaminsson.

Jensen Huang himself commented on the infidelity affair in a message to the staff: "There is no excuse for what I did. I am truly sorry". Whether he can remain as CEO remains to be seen.

- My guess is that Nvidia will try to keep him as long as possible. He is a very important person for the company, says Elin Benjaminsson.

The crucial question will be what emerges in the investigation. Huang has also been called to a closed hearing in the House of Representatives by three Republican members regarding the affair.

- If it turns out that Jensen Huang has been influenced by this woman to benefit China, it will damage the trust in him and the company very much. At the same time, one should not underestimate how quickly things can blow over, says Avanza's stock market strategist.