Nvidia shares drop 6% after reports of probe into CEO’s Chinese spy link
ANI New DelhiShares of US-based technology giant Nvidia fell more than 5 per cent in out-of-hours trading on Monday following an internal investigation into whether its Chief Execu...
Shares of Nvidia, a leading US technology company, dipped more than 5% in after-hours trading on Monday as an internal probe into whether CEO Jensen Huang was targeted by a foreign intelligence operation unfolded, according to Reuters. The company's stock suffered a loss of $10.74, or 5.75%, from Friday's closing price, as it grapples with allegations surrounding Huang's close ties to a Chinese businesswoman who allegedly passed sensitive information to Beijing.
The investigation, initiated on Sunday, has raised concerns about Nvidia's leadership amidst its crucial role in the global AI boom, particularly in semiconductors and data centers. Huang reportedly acknowledged an infidelity matter to employees but refrained from further details. Analysts cautioned that the situation could cloud investor sentiment during a period of heightened speculation about data center development.
US authorities had previously scrutinized the businesswoman, a former executive at Singapore-based Megaspeed, deeming her an intelligence asset. The fallout also led to the cancellation of corporate engagements abroad and prompted some executives, like Bill Ackman and Elon Musk, to express their views on social media. Despite Musk's critique of Huang's actions, he emphasized Huang's indispensable role in America's AI leadership.
President Donald Trump, on the other hand, downplayed the incident, describing Huang as an honorable individual.
Written by urgent.news from Qatar Tribune Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
