Nvidia's stock experienced a decline of over 4% on Monday, falling to $178.83 per share. This downturn occurred in the first trading session after the company disclosed that its board had initiated an independent investigation into CEO Jensen Huang. The probe was launched in response to reports suggesting Huang has been the target of a foreign intelligence-gathering effort.
An independent committee of directors, supported by outside counsel, will oversee the investigation. Nvidia stated that Huang fully supports the review and will cooperate with it. The company, a key player in the artificial intelligence boom due to its high-performance chips, has achieved significant revenue growth in recent quarters despite scrutiny over data centers and concerns about an AI financial bubble. As of Monday, Nvidia's market capitalization exceeded $4 trillion, positioning it as the world's second-largest company.
The New York Times reported last month that U.S. intelligence officials identified a woman, described as Alice Huang, a top executive at Singapore-based Megaspeed, as funneling information to Beijing and developing a close relationship with Nvidia's CEO. The Chinese government has denied these allegations, calling them "baseless and purely slanderous smears against China." Neither Alice Huang nor Megaspeed International have responded to requests for comment.
Previously, an Nvidia spokesperson told ABC News that Huang's interactions with Alice Huang were not unusual for his job. However, Nvidia on Sunday shared an internal message from Jensen Huang to employees in which he acknowledged being "unfaithful" to his wife and expressed deep regret for hurting his family. The message did not name Alice Huang or any other individual.
In his message to staff, partners, and shareholders, Huang stated his commitment to Nvidia and his intention to regain their confidence. He also affirmed his love for the country and the company, expressing pride and gratitude for being an American and his commitment to protecting Nvidia and supporting U.S. national security.
Overall U.S. stock markets saw gains on Monday, with the Dow Jones Industrial Average increasing by 1.4%, the S&P 500 rising 1.7%, and the Nasdaq jumping 2.2%, recovering some of the losses from the previous Thursday's selloff.