Nvidia shares fall 4pct as board investigates Jensen Huang over alleged China spy links

Nvidia's shares plummeted nearly 4% after the company's board initiated an investigation into CEO Jensen Huang over allegations of espionage for China. Huang, the 63-year-old Taiwanese-born founder and CEO of the AI chip behemoth, acknowledged an extramarital affair in a message to Nvidia employees. US officials reportedly believe the woman involved in the affair was a Chinese spy working for the Beijing government.

Huang denied any knowledge of his girlfriend's espionage activities, stating, "I had no idea that she was a spy." The investigation comes after The New York Times reported that Alice Huang, a Chinese executive linked to Singapore-based data center company Megaspeed, had been passing information to Beijing. The executive's relationship with Huang is alleged to have given her insights into US AI policy, particularly President Donald Trump's stance on regulating the industry.

US officials have denied the espionage allegations, with China's foreign ministry dismissing the claims as "baseless vilification and smearing." Nvidia's board stated that the inquiry will examine all available information, emphasizing that there is no reason to believe national security or Nvidia secrets were compromised. However, analysts predict that the scandal will cast a shadow over Nvidia's stock and potentially lead to congressional inquiries.