Key facts
- Nvidia said it was investigating whether CEO Jensen Huang was targeted in a foreign intelligence effort.
- The probe followed a media report on Huang's ties to a Chinese businesswoman and his daughter's cancelled Seoul visit, Reuters said.
- Huang apologized to staff for being unfaithful to his wife and said he would cooperate with the investigation.
Nvidia shares dropped in off-hours trading after the company said it was investigating whether CEO Jensen Huang was targeted in a foreign intelligence effort. Reuters reported the stock fell about 3% in after-hours and perpetual futures trading, while Business Insider reported it was 4.5% lower in premarket trading as of 5:45 a.m. ET, a move it said would wipe out about $190 billion from Friday's closing valuation.
The investigation followed a media report on Huang's ties to a Chinese businesswoman, and his daughter cancelled a Seoul visit, according to Reuters. In late October, The New York Times reported that American intelligence agencies had discovered Huang had a close relationship with Alice Huang, a Chinese citizen and executive at a Singapore-based data center company, and concluded she was a Chinese intelligence asset. An Nvidia spokesperson told the Times at the time that the interactions were not unusual.
On Sunday, Huang sent a note to staff acknowledging he had been "unfaithful" to his wife, Lori Huang, and said he supported the investigation and would cooperate fully. The company's board opened the probe into whether he was the target of a "foreign intelligence effort."
Business Insider reported the stock had already fallen 20% over the past month and linked the broader tech sell-off to concerns over AI infrastructure spending and the Democrats' midterm election gains. Mohamed El-Erian wrote on X that "key-man risk" was a concern for the board.