Nvidia’s out-of-hour shares fall as firm probes CEO Jensen Huang

Nvidia's shares declined in after-hours trading on Monday following an internal probe into whether CEO Jensen Huang had been targeted by a foreign intelligence operation. The investigation began after a media report claimed Huang had a close relationship with a Chinese businesswoman who allegedly provided information to Beijing.

Huang informed Nvidia employees that he had been unfaithful to his wife, though he did not provide further details about the relationship. The probe, announced on Sunday, has raised concerns about Huang's future amid Nvidia's status as the world's most valuable chipmaker and his pivotal role in the AI boom. The fallout extended to South Korea, where Huang's daughter, Madison, cancelled a planned visit to Seoul for an Nvidia conference scheduled to start on Monday.

Analysts noted that the market's reaction was concerning, as the stock fell by around 3.4% from Friday's closing price of $186.64. Chris Weston, head of research at Pepperstone, stated that he did not believe Huang, regarded as "the godfather of AI," would be replaced. However, he emphasized that a prolonged investigation could potentially delay Nvidia's investment decisions or product launches, which could have broader implications for the semiconductor industry.