Nvidia plunges and loses billions due to investigation into its chief
Nvidia shares dropped roughly 6% and hundreds of billions in market value were wiped out after the board announced an independent investigation concerning CEO Jensen Huang. The stock fell about 6% on Monday after Nvi
Nvidia shares dropped roughly 6% and hundreds of billions in market value were wiped out after the board announced an independent investigation concerning CEO Jensen Huang.
The stock fell about 6% on Monday after Nvidia CEO Jensen Huang admitted to having an extramarital affair. The decision to investigate came after reports that U.S. authorities believed Huang was the target of a spying operation by Beijing.
What was the relationship and what do the authorities claim?
According to the New York Times, US intelligence agencies believe that Alice Huang, also known as Huang Le, was a spy for China. She was the CEO of a Singapore company that had worked with Nvidia.
US Secretary of State Marco Rubio had previously sent a memo warning about the Nvidia chief's close relationship with the Chinese spy. China's Foreign Ministry rejected the allegations, calling them baseless and speculative.
The company's stance and the research
Nvidia said it had no reason to believe its secrets or national security were compromised. The board, however, said it would launch an investigation into the reports. Huang apologized, pledged to protect the company and U.S. security, and said he would cooperate fully.
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Important figures, such as Elon Musk, as well as US President Donald Trump, expressed their support for Jensen Huang.
What is the impact on the market?
The turmoil has wiped about $250 billion off Nvidia's total value. Analysts believe the pressure on the company will be short-lived, as Nvidia remains a central pillar in the artificial intelligence sector.
Jensen Huang founded Nvidia in 1993, owns about 3,5% of the shares and has no veto power. Fluctuations in the company's stock can indirectly affect savings or retirement plans that invest in broader market indices.
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Originally published by Dev.to AI. Aggregated on AIWithGhost for educational purposes β full credit and traffic to the original publisher.