Nvidia, the leading AI chipmaker, saw its shares fall approximately 4% to $178.44 in Monday's trading. The drop occurred as the company announced an internal investigation into whether its CEO, Jensen Huang, had been targeted by a foreign intelligence operation.
The stock had previously plunged as much as 8% earlier in the session, hitting a multi-month low of $172.37. This recent downturn contributes to a sustained selling pressure, with Nvidia's shares declining 22.47% over the past month, wiping $51.51 off its share price, and approximately 17.4% over the last six months.
Board Launches Independent Inquiry
Nvidia's board of directors announced on Sunday an independent investigation into reports that its founder and CEO had been the target of a foreign intelligence effort. A committee of independent directors, supported by external legal counsel, will oversee the inquiry.
The company stated, "While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board's inquiry will examine all available information." Huang has committed to fully cooperating with the review and will continue to serve as CEO during the investigation.
CEO Admits Personal Conduct, China Denies Allegations
Last month, reports emerged linking Huang to a Chinese businesswoman, Alice Huang, who US intelligence agencies suspected of passing information to Beijing. Alice Huang, a Chinese citizen and business executive, is associated with the Singapore-based data center company Megaspeed.
In a letter to Nvidia employees, Jensen Huang admitted to being unfaithful to his wife, stating, "My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility."
China has rejected the spying allegations. According to China's foreign ministry spokesperson Guo Jiakun, "The so-called claim of ‘Chinese spies’ is completely groundless and is nothing but a smear against China."