Shares of US chip giant Nvidia fell more than 5 per cent during out-of-hours trading on Monday, following an investigation into whether CEO Jensen Huang was targeted in a foreign intelligence operation. Nvidia shares fell sharply by 5.75 per cent. Nvidia-linked perpetual futures on the Hyperliquid platform and the Blue Ocean Alternative Trading System (BOATS) traded around USD 175.97 in after-hours trading, down USD 10.74, or 5.75 per cent, from Friday’s closing price of USD 186.64 on Nasdaq.
Reports of a relationship between CEO Jensen Huang and a Chinese woman alleged to be a spy have raised concerns about the company’s leadership at a time when Nvidia remains a key player in the global expansion of artificial intelligence (AI), particularly in the semiconductor and data centre markets.
Nvidia launches an investigation into the matter
Nvidia launched an internal corporate investigation into the matter on Sunday. The move came after reports claimed Huang had a relationship with a Chinese businesswoman who allegedly passed sensitive information to Beijing. According to reports, Huang told employees he had cheated on his wife, but he did not provide any further details.
Speaking about the impact on Nvidia’s stock, experts say the situation has increased market uncertainty. They say the market is likely signalling that, at a time of heavy speculation about data centre construction, this development is not good for the company’s stock.ย
However, experts believe that any immediate change in the company’s leadership is unlikely. If investors truly believed the CEO was going to resign, the stock would likely see a bloodbath.
Elon Musk, Bill Ackman back NVIDIA chief
Meanwhile, Tesla CEO Elon Musk and billionaire investor Bill Ackman on Monday backed NVIDIA CEO Jensen Huang amid a controversy, urging people to support the technology leader and his family and endorsing a defence of Huangโs importance to US artificial intelligence leadership.ย
Taking to the social media platform X, Ackman, CEO of Pershing Square Capital Management, said Huang was human and that even exceptional individuals could make mistakes.ย
Ackman said Huang had taken responsibility for his actions and urged people to stand by him and his family.
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