Nvidia Stock Plummets
The board’s probe follows reports that Huang was the target of a foreign intelligence effort after a romantic relationship with Alice Huang, an executive at Singapore-based tech company Megaspeed whom U.S. intelligence officials suspect of working for Chinese intelligence, CNN reported.
Nvidia’s stock lost over 5% premarket, while Bitcoin hovered near $74,000, CoinDesk reported.
Board Launches Investigation
Nvidia announced that an independent committee of directors, assisted by outside counsel, is overseeing an inquiry into the matter. The board stated it has no reason to believe that national security or company secrets were compromised, according to the Nvidia Newsroom.
The Board prioritizes U.S. national and economic security, which is paramount to the interests of NVIDIA and its shareholders,
the Nvidia Board of Directors said in a news release.
(FT) – The US government believes Nvidia’s chief executive Jensen Huang had a romantic relationship with a Chinese woman who was recruited to spy for China’s main intelligence agency, according to people familiar with the matter.@FT $NVDA https://t.co/R49cFzZ9MX pic.twitter.com/xnwYG1PbQo
Jensen Huang fully supports the review and has committed to cooperating with it, the Nvidia Newsroom reported.
House panels request Huang's appearance regarding security and relationships
Republican chairmen of three influential House panels sent a letter to Huang requesting his appearance before their committees, CNN reported. Lawmakers want to question him about his relationship with Megaspeed and corporate security protocols against foreign espionage, according to CNN.
President Trump is standing by $NVDA CEO Jensen Huang amid investigation saying “he hasn’t done anything wrong.” He also left door open to bringing Jensen on next week’s Asia trip adding “I don’t know but I’d certainly take him.” pic.twitter.com/c3m8RHZD5S
Jensen Huang joined President Donald Trump and other high-profile executives in Beijing earlier this year to meet with Chinese leader Xi Jinping, CNN reported.
AI demand drives valuation amid probe and market pressure
Nvidia’s market capitalization has swollen to more than $4 trillion as the rise of artificial intelligence turbocharged demand for its computer chips, CNN reported. The unfolding probe adds fresh pressure to the broader AI trade and neocloud stocks such as IREN, CoreWeave, and Cipher Digital, which fell around 2% in pre-market trading, CoinDesk reported.
Corporate boards historically tend to oust chief executives caught having extramarital affairs within days, tech journalist and CNN contributor Jacob Ward said on CNN. George Chen, partner and chair of digital practice at The Asia Group, noted in a Monday note reported by CNN that Nvidia and Jensen are deeply intertwined.
Frequently Asked Questions
What did Jensen Huang admit to regarding the investigation?
CNN reported that Nvidia chief Jensen Huang admitted to having an extramarital affair as reports emerged that he was the target of a foreign intelligence effort involving Alice Huang.
$NVDA just announced an independent board investigation into reports that CEO Jensen Huang was targeted by a foreign intelligence effort. The board emphasized it has “no reason to believe that either national security or Nvidia secrets were compromised” while reaffirming its… pic.twitter.com/jc7UfUF1iT
Who is overseeing the Nvidia board investigation?
A committee of independent directors, assisted by outside independent counsel, is overseeing the inquiry, according to the Nvidia Newsroom.
Which congressional committees requested Jensen Huang’s appearance?
Republican chairmen of three House panels—the committees on Foreign Affairs, the Chinese Communist Party, and Intelligence—sent a letter requesting his appearance, CNN reported.
“. I was unfaithful to my wife,” he said. “My actions hurt her and our children. There is no excuse for what I did.”@business $NVDA https://t.co/E4hg6GuYnm pic.twitter.com/FWTB2MdaaX
Earlier coverage: Nvidia Board Probes Jensen Huang Over Alleged Intelligence Link
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