Nvidia stock slumps amid board investigation into CEO Jensen Huang
Summary
Nvidia shares fell nearly 6% in premarket trading after the company’s board announced an independent investigation into allegations that China targeted CEO Jensen Huang in an intelligence operation. The investigation has raised questions about Huang’s position and the risk of tighter U.S. limits on Nvidia chip exports to China.Key Facts
- Nvidia shares dropped $11.05, or 5.9%, to $175.49 in premarket trading Monday.
- Nvidia’s board said Sunday it had begun an independent investigation into allegations involving Huang.
- The allegations concern reports that Huang had a close relationship with Alice Huang, whom U.S. intelligence officials believe was a Chinese intelligence agent.
- China’s Foreign Ministry spokesperson rejected the allegations as baseless.
- Nvidia shares had fallen nearly 20% over the month before Monday’s premarket decline amid wider concerns about AI-stock valuations.
- Analyst Adam Crisafulli said the investigation could increase the risk of additional U.S. restrictions on Nvidia chip sales to China.
- President Trump approved Nvidia’s sale of H200 chips to China this year; the chips are not the company’s most advanced models.
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