Nvidia shares fall again as inquiry into chief executive continues

Nvidia shares fell on Monday after the chipmaker announced an independent investigation into reports that chief executive Jensen Huang had been targeted by a foreign intelligence effort.

Dutch news agency ANP reported that the shares were down about 8% during trading, reducing Nvidia’s stock-market value by more than $350 billion. It did not give an exact time for the price or explain its calculation.

Earlier, Reuters reported that the shares were nearly 5% lower in pre-market trading, a fall equivalent to about $250 billion compared with the previous close. Nvidia shares had also fallen the week before. The figures are snapshots, not closing prices, and do not establish how much of Monday’s movement was caused by the investigation.

Nvidia announced the inquiry on Sunday, 8 November. In a message to staff the same day, Huang said he had been unfaithful to his wife and apologised to his family and colleagues. He did not name the other person.

Reuters reported that The New York Times had identified a Chinese businesswoman with whom Huang had a relationship and said US authorities had investigated her and concluded she was a Chinese intelligence asset. China’s foreign ministry rejected the allegation as groundless.

Nvidia’s board said it had no reason to believe national security or company secrets had been compromised, but that the inquiry would examine the available information. A committee of independent directors, assisted by outside counsel, will oversee the review. The board expressed confidence in Huang and his leadership team; Huang said he supported the investigation and would cooperate.

Update

Nvidia shares were down 3.57% at $172.30 at 10.22am New York time, according to Stock Analysis. They had closed at $178.67 on Monday, a fall of 4.27% for the day. Stock Titan estimated that Monday’s decline reduced Nvidia’s market value by about $192 billion.

The chipmaker fell on Monday even as other major chip stocks rose. On Tuesday, the wider US market was also lower in early trading. Dutch news agency ANP reported a cautious mood after US inflation figures came in slightly higher than expected.

Nvidia’s board announced an independent investigation on Sunday after reports that chief executive Jensen Huang had been targeted by a foreign intelligence operation.

The BBC, citing The New York Times, reported that US intelligence officials believe Alice Huang, a former managing director of Singapore-based Megaspeed, was spying for China. China has rejected the allegation.

In a message to employees on Sunday, Jensen Huang said he had been unfaithful to his wife and apologised. He did not name anyone else in the letter and said he would cooperate with the investigation.

Nvidia’s board said it had no reason to believe national security or company secrets had been compromised. It expressed confidence in Huang and his leadership team.