Nvidia shares slump amid investigation into CEO Jensen Huang
Summary
Nvidia shares fell more than 4% in early trading after the company said its board had opened an independent investigation into whether CEO Jensen Huang was targeted by a Chinese intelligence operation. Nvidia said it had no reason to believe national security or company secrets had been compromised, and Huang said he would cooperate. Other major U.S. stock indexes rose during the same trading session.Key Facts
- Nvidia announced the board investigation on Sunday.
- Reports cited in the article allege that Huang had a relationship with Alice Huang, a former executive at Nvidia partner Megaspeed, who U.S. authorities reportedly concluded was a Chinese intelligence asset.
- Jensen Huang said in a letter to employees that he supported the investigation and would cooperate fully.
- Nvidia said the inquiry would examine available information and that the board had no reason to believe national security or company secrets were compromised.
- Nvidia shares dropped more than 4% in early trading, while the Nasdaq rose 2.7%, the Dow Jones Industrial Average rose 1.7%, and the S&P 500 rose 2.1%.
- The article reports that Huang owns 3.6% of Nvidia and is its fifth-largest shareholder, but does not have majority voting control.
- China’s Foreign Ministry rejected the spying allegations, calling them groundless.
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