Nvidia shares crash 8% after reports of probe into CEO Jensen Huang's alleged spy links

Shares of Nvidia tumbled over 8 per cent on Monday (November 9) after trading opened in the US markets, hours after the company opened an investigation into Chief Executive Officer (CEO) Jensen Huang over an affair with a woman who is suspected of being a spy for China.

The investigation, announced by the company on Sunday, has placed Huang’s future in the spotlight, downgrading Nvidia’s status as the world’s most valuable chipmaker amid the AI boom. Meanwhile, the latest data indicated that the company is valued at $4 trillion.

Nvidia’s stock drops nearly 8%

Nvidia’s stock plunged in pre-market trading and continued to slide once markets opened, dropping nearly 8% to $171.80, according to the BBC. The fall comes just weeks after the stock had touched a record high in October.

The probe follows media reports alleging that Huang had a relationship with Alice Huang, a Chinese businesswoman who previously held a senior position at a Singapore-based data centre firm that does business with Nvidia. According to these reports, she allegedly shared information with intelligence officials in Beijing.

Citing US intelligence sources, the reports say officials believe Huang maintained a close relationship with her. China’s Foreign Ministry, however, pushed back on Monday, dismissing the spying allegations as a smear campaign against Beijing.

(This is a developing story. More details are awaited.)