Key Summary
- Nvidia shares fell more than 4% in U.S. after-hours trading after reports tied CEO Jensen Huang to an affair scandal and an internal board inquiry.
- The company’s board has begun an investigation with outside legal experts to determine whether Huang was targeted by a foreign intelligence service.
- Nvidia said it has no basis so far to conclude that U.S. national security or company secrets were compromised.
- The stock had already been under pressure and was reported to be about 22% below its October peak.
- Market attention is also on Nvidia’s quarterly earnings release scheduled for the 17th.
Main Story
Nvidia shares came under renewed pressure in after-hours trading after the company’s chief executive, Jensen Huang, acknowledged an affair in an internal memo and the board opened an investigation into the matter. According to Yonhap Infomax, Nvidia was trading at $178.64 at 1:09 a.m. U.S. Eastern Time on the Blue Ocean alternative trading venue, down 4.29% from the previous session. Robinhood also showed a drop of more than 4% at one point on the night of the 8th.
The controversy centers on Alice Huang, a former executive at Singapore-based Megaspeed International. The article says U.S. intelligence authorities suspect she was recruited by Chinese intelligence and passed information to Beijing. In response, Nvidia’s board began a probe involving outside legal experts to determine whether Huang himself may have been targeted by a foreign intelligence service.
The board said it has not seen grounds to believe that U.S. national security or Nvidia’s corporate secrets have been breached. Huang has said he will cooperate with the investigation and will remain chief executive.
The latest decline added to a broader share-price retreat. Nvidia has been weighed down by concerns over how large technology companies will fund AI investments and by uncertainty around the semiconductor sector after the U.S. midterm elections, with the stock reported to be roughly 22% below its October high.
Market participants are also watching the company’s quarterly earnings report, due on the 17th, for signs of whether results can calm investor concerns. Some analysts cited the uncertainty around Huang’s position as a factor that could matter to shareholders, while others said the company’s core AI chip demand remains strong. U.S. President Donald Trump was quoted as calling Huang a “great person” and backing his continuation in the role.
Asian semiconductor stocks moved higher on the day, with Reuters reporting gains of 6.5% for Taiwan’s TSMC, 2.9% for Samsung Electronics, and 4.7% for SK hynix.
Background
The supplied text indicates that Nvidia had already been facing weakness before this episode, citing broader concerns over AI investment funding and semiconductor-sector uncertainty after the U.S. midterm elections. No additional background was provided.
Items Requiring Further Verification
- The allegation that Alice Huang was recruited by Chinese intelligence and passed information to Beijing is attributed to U.S. intelligence authorities and is not independently substantiated in the supplied text.
- The claim that Huang was the target of a foreign intelligence service is presented as the purpose of Nvidia’s investigation and remains under review.
- The article does not provide direct evidence that the scandal caused the stock decline beyond timing and market reaction, so causation should be treated cautiously.
- The reported share prices, percentage moves, and intraday trading details should be independently confirmed through primary market data.
- The statement that Nvidia shares were about 22% below their October peak is provided in the text and should be verified against market records.